Two independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences:   SITUATION 1 2 Taxable income $ 48,000 $ 88,000 Amounts at year-end:         Future deductible amounts   5,800   10,800 Future taxable amounts   0   5,800 Balances at beginning of year, dr (cr):         Deferred tax asset $ 1,000 $ 3,240 Deferred tax liability   0   1,000        The enacted tax rate is 30% for both situations.   Required: For each situation determine the:                                  Situation 1 and 2   a. income tax payable currently b. deferred tax asset - balance at year-end c. deferred tax asset change dr or cr for the year d. deferred tax liability - balance at year-end e. deferred tax liability change dr or cr for the year f. income tax expense for the year.

vn.2 At the end of the year, the deferred tax asset account had a balance of $8 million attributable to a temporary difference of $32 million in a liability for estimated expenses. Taxable income is $88 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%.Prepare the journal entry(s) to record income taxes, assuming it is more likely than not that three-fourths of the deferred tax asset will not ultimately be realized.

Sandhill Company has the following cumulative taxable temporary differences: 12/31/21 12/31/20 $2000000 $2650000 The tax rate enacted for 2021 is 30%, while the tax rate enacted for future years is 20%. Taxable income for 2021 is $4800000 and there are no permanent differences. Sandhill’s pretax financial income for 2021 is: $6800000 $2800000 $4800000 $4150000

Complete the following statements by filling in the blanks.

A company prepared the following reconciliation for 2021:   Pretax financial income for 2021                                            $719,000 Originating temporary difference                                              19,000 Permanent difference                                                              (38,000)       Taxable income                                                                        $xxxx (Figure this amount out on your own.                                                                                                             Note: the parentheses outside                                                                                                                             the permanent difference mean                                                                                                               subtraction).    The temporary difference will reverse evenly over the next two years (i.e., 2022 and 2023). The enacted income tax rates are…

Please answer fast without plagiarism please no plagiarism

None

Beaver Dam Inc. (BDI) listed the following items to prepare a reconciliation between book and taxable income.  GAAP net income before tax                  $700,000 Meal expense                                       100,000 GAAP depreciation expense                      110,000 Depreciation expense for tax purposes  120,000   a. Compute BDI’s tax expense for financial statement purposes. b. Compute BDI’s tax payable to the IRS. c. Compute the net increase in BDI’s deferred tax assets or deferred tax liabilities for the year. d. Prepare the journal entry to record taxes for the year.

The following is governed by an income tax rate of 25% . Depreciation rate is determined using MACRS A company is considering two alternatives Choice 1 : Amachine is purchased for 60,000. It is a 5 year property class. It will be used for 10 years after which it will have a salvage value of 15,000. It is mostly grey with a metallic steel cover. The Before Tax Cash Flow will be 80,000 per year. The machine is purchased from Retained Earning cash outright. It has no extra deductions associated with it. Choice 2: A machine is purchased for 65,000. It is a 10 year property class object. It will be used for 12 years with a salvage value of 18,000. It is mostly blue with a white cover. The Before Tax Cash Flow will be 86,000 per year. The machine is purchased from Retained Earnings Cash Outright. It receives an additional allowance for environmental effects of 5000/yr. The allowance is not taxed. and is not included in the 86,000 BTCF.

Eight Independent situations are described below. Each involves future deductible amounts and/or future taxable amounts: 1. 2. 3. 5. 6. 7. 2 The Income Statement Revenue 3 4 5 6 7 8 ($ in millions) Temporary Differences Reported First on: The Tax Return $24 19 19 19 Expense $24 Situations Taxable Income 1 24 24 24 24 Revenue $24 19 9 Expense Required: For each situation, determine taxable income, assuming pretax accounting income is $140 million. (Enter your answers in millions (I.e., 10,000,000 should be entered as 10).) $24 14 14