Troy Ltd., at the end of 2023, its first year of operations, prepared a reconciliation between pre-tax accounting income and taxable income as follows: Pre-tax accounting income $300,000 Excess CCA claimed for tax purposes (600,000) Estimated expenses deductible when paid $200,000 Use of the depreciable assets will result in taxable .... 500,000 Taxable income amounts of $200,000 in each of the next three years. The estimated expenses of $500,000 will be deductible in 2026 when settlement is expected to be made. The enacted tax rate is 25% and is to increase to 30%, starting in 2024. Instructions a) Prepare a schedule of the deferred taxable and deductible amounts. b) Prepare the required adjusting entries to record income taxes for 2023
Troy Ltd., at the end of 2023, its first year of operations, prepared a reconciliation between pre-tax accounting income and taxable income as follows: Pre-tax accounting income $300,000 Excess CCA claimed for tax purposes (600,000) Estimated expenses deductible when paid $200,000 Use of the depreciable assets will result in taxable .... 500,000 Taxable income amounts of $200,000 in each of the next three years. The estimated expenses of $500,000 will be deductible in 2026 when settlement is expected to be made. The enacted tax rate is 25% and is to increase to 30%, starting in 2024. Instructions a) Prepare a schedule of the deferred taxable and deductible amounts. b) Prepare the required adjusting entries to record income taxes for 2023
Chapter14: Taxes On The Financial Statements
Section: Chapter Questions
Problem 4BCRQ
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Transcribed Image Text:Troy Ltd., at the end of 2023, its first year of operations, prepared a reconciliation between pre- tax accounting income and taxable income as follows: Pre-tax accounting income
$300,000 Excess CCA claimed for tax purposes
... (600, 000) Estimated expenses deductible when paid
$200,000 Use of the depreciable assets will result in taxable
500,000 Taxable income ...
amounts of $200,000 in each of the next three years. The estimated expenses of $500,000 will be deductible in 2026 when settlement is expected to be made. The enacted tax rate is 25% and is to increase
to 30%, starting in 2024. Instructions a) Prepare a schedule of the deferred taxable and deductible amounts. b) Prepare the required adjusting entries to record income taxes for 2023
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