TRW Inc. began business in 2021 and incurred net operating losses for its first 2 years. In 2023, it became profitable. The following amounts are TRW's taxable income before consideration of the NOLs. Recompute TRS's taxable income for 2023 through 2028 after its allowable net operating loss deduction. How much of the NOL remains in 2025? 2021 = $(420,000), 2022 = $(358,000), 2023 = $81,000, 2024 = $41,000, 2025 = $210,000, 2026 = $298,000, 2027 = $387,000, 2028 = $905,000

At the beginning of 2019, Norris Company l1ad a deferred tax liability of $6,400, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income tax rate is 30% for 2018 and 2019, but in 2018 Congress enacted a 40% tax rate for 2020 and future years. Norris’s accounting records show the following pretax items of finacial income for 2019: income from continuing operations, $120,000 (revenues of $352,000 and expenses of $232,000); gain On disposal of Division F, $23,000; loss from operations of discontinued Division F, $10,000；and prior period adjustment, $15,000, due to an error that understated revenue in 2018. All of these items are taxable; however, financial depreciation for 2019 on assets related to continuing operations exceeds tax depreciatio11 by $5,000. Norris had a retained earnings balance of $161,000 on January 1, 2019, and declared and paid casl1 dividends of $32,000 during 2019. 1. Prepare Norris’s…

Prior to 2019, the accounting income and taxable income for Sheffield Corporation were the same. On January 1, 2019, the company purchased equipment at a cost of $1,116,000. For accounting purposes, the equipment was to be depreciated over six years using the straight-line method and no residual value. For income tax purposes, the equipment was subject to a CCA rate of 30% (half-year rule applies for 2019). Sheffield's income before tax for accounting purposes for 2020 was $13,000,000. The company was subject to a 20% income tax rate for all applicable years and anticipated profitable years for the foreseeable future. Sheffield follows IFRS. Calculate taxable income and taxes payable for 2020. Taxable income Income taxes payable $ eTextbook and Media List of Accounts %24 %24

Oriole Co. at the end of 2021, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 690,000 Estimated warranty expenses deductible for taxes when paid 1,140,000 (1,632,000) $ 198,000 Extra depreciation Taxable income Estimated warranty expense of $830,000 will be deductible in 2022, $240,000 in 2023, and $70,000 in 2024. The use of the depreciable assets will result in taxable amounts of $544,000 in each of the next three years. Prepare a table of future taxable and deductible amounts. 2022 Future taxable(deductible) amounts Warranties Excess Depreciation Date 2023 Account Titles 2024 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2021. Assuming an income tax rate of 30% for all years. TOTAL Debit Credit