Income from continuing operations and retained earnings The accountant preparing the income statement for SMC had some doubts about the appropriate accounting treatment of the six items listed below during the fiscal year ending December 31, 2023. Some of the six items have already been recorded in income from continuing operations while others have not yet been recorded. If needed, assume a tax rate of 40 percent. Required: for each of the six items, decided whether A) the item needs to be adjusted in Income from Continuing Operations, B) the item needs to be reported below Income from Continuing Operations, or C) reported on the Statement of Retained Earnings. 1. Office equipment purchased January 1, 2023, for $60,000 was incorrectly charged to Supplies Expense at the time of purchase. The office equipment has an estimated three-year service life with no expected salvage value. SMC uses the straight-line method to depreciate office equipment for financial reporting purposes. This…

Part A: This year, Gumowski Company has each of the following items in its income statement. 1.    Gross profits on installment sales. 2.    Revenues on long-term construction contracts. 3.    Estimated costs of product warranty contracts. 4.    Premiums on officers' life insurance policies with Gumowski as beneficiary. Instructions a.    Indicate where deferred income taxes are reported in the financial statements. b.    Specify when deferred income taxes would need to be recognized for each of the items above, and indicate the rationale for such recognition. Part B: Gumowski Company's president has heard that deferred income taxes can be classified in different ways in the balance sheet. Instructions Identify the conditions under which deferred income taxes would be classified as a noncurrent item in the balance sheet. What justification exists for such classification?

1. Prepare journal entries to record the income tax and 2. Present the income tax expense in the income statement Problem 16-3 (ACP) In 2021, Argentina Company received an advance payment of P1,000,000, which was subject to tax but not reported in accounting income until 2022. The income statement and tax return showed the following: 2021 2022 Income before tax per income statement Income before tax per tax return Income tax rate 6,000,000 7,000,000 9,000,000 8,000,000 25% 25% Required: 1. Prepare journal entries to record the income tax a deferred tax for 2021 and 2022. for 2021 and 2022.

A company reported in the income statement for the current year 900,000 income before provision for income tax. Please consider the following information: Rent income received in advance 150,000Interest income on time deposit 200,000Depreciation deducted for income tax purposes in excess of financial depreciation 100,000Income tax rate 30% What amount should be reported as current provision for income tax or current tax expense for the current year?

The following are selected items derived from Dibb Company’s adjusted trial balance on December 31, 2019: Assuming a 30% income tax rate on all items of income, prepare Dibb’s 2019 income statement using (1) a multipie-step format and ( 2) a single-step format.

a. Prepare a schedule showing the reversal of the temporary differences and the computation of income taxes payable and deferred tax asset or liability as of December 31, 2020.b. Prepare journal entries to record income taxes payable and deferred income taxes.c. Prepare the section of the statement of comprehensive income of Wall Services beginning with "Income from continuing operations before income taxes" for the year ended December 31, 2020.

Brush Company has the following income before income tax and estimated effective annual income tax rates for the first three quarters of 2019. Quarter Income before income Estimated Effective Tax Tax provision rate 7 st 120,000 12 2nd 130,000 10 3rd 140,000 14 Required: What should be Brush company estimated income for "First" quarter income statement? Select one: a. $54,600 b. None of the other points c. $39,000 Od. $46,800 %24

The following facts relate to a company for 2021:    Income tax payable                    $150,200 Income tax expense                     242,700 Taxable income                            448,000 Pretax financial income                873,000   What is the effective income tax rate for 2021? Very important: Please present your answer in percentage format, and round the percentage amount to 2 decimal places if necessary. For example, your answer should look like 23.45% or 23.45 (the percentage sign, %, is optional), not 0.2345.

Romie Ltd is preparing accounts for the year ended 31 December 20X5. The company has an estimated tax charge of $35,000 for the year ended December 20X5. The trial balance includes an entry of $2,000 relating to an over provision of tax in the previous financial year. What is the charge for tax in the statement of profit or loss for the year ended December 20X5?