1. Depreciation reported on the tax return exceeded depreciationreported on the income statement by $136,000. This difference willreverse in equal amounts of $34,000 over the years 2015â2018. 2.Interest received on municipal bonds was $14,200. 3. Rent collectedin advance on January 1, 2014, totaled $69,000 for a 3-year period.Of this amount, $46,000 was reported as unearned at December 31,2014, for book purposes. 4. The tax rates are 50% for 2014 and 45%for 2015 and subsequent years. 5. Income taxes of $321,200 are dueper the tax return for 2014. 6. No deferred taxes existed at thebeginning of 2014. Compute taxable income for 2014. Taxable incomefor 2014 $ SHOW LIST OF ACCOUNTS LINK TO TEXT Compute pretaxfinancial income for 2014. Pretax financial income for 2014 $ SHOWLIST OF ACCOUNTS LINK TO TEXT Prepare the journal entries to recordincome tax expense, deferred income taxes, and income taxes payablefor 2014 and 2015. Assume taxable income was $985,000 in 2015.(Credit account titles are automatically indented when amount isentered. Do not indent manually.) Date Account Titles andExplanation Debit Credit 2014 2015 SHOW LIST OF ACCOUNTS LINK TOTEXT Prepare the income tax expense section of the income statementfor 2014, beginning with âIncome before income taxes.â (Enternegative amounts using either a negative sign preceding the numbere.g. -45 or parentheses e.g. (45).) Remmers Corporation IncomeStatement (Partial) Year ended December 31, 2014 $ $ $
1. Depreciation reported on the tax return exceeded depreciationreported on the income statement by $136,000. This difference willreverse in equal amounts of $34,000 over the years 2015â2018. 2.Interest received on municipal bonds was $14,200. 3. Rent collectedin advance on January 1, 2014, totaled $69,000 for a 3-year period.Of this amount, $46,000 was reported as unearned at December 31,2014, for book purposes. 4. The tax rates are 50% for 2014 and 45%for 2015 and subsequent years. 5. Income taxes of $321,200 are dueper the tax return for 2014. 6. No deferred taxes existed at thebeginning of 2014. Compute taxable income for 2014. Taxable incomefor 2014 $ SHOW LIST OF ACCOUNTS LINK TO TEXT Compute pretaxfinancial income for 2014. Pretax financial income for 2014 $ SHOWLIST OF ACCOUNTS LINK TO TEXT Prepare the journal entries to recordincome tax expense, deferred income taxes, and income taxes payablefor 2014 and 2015. Assume taxable income was $985,000 in 2015.(Credit account titles are automatically indented when amount isentered. Do not indent manually.) Date Account Titles andExplanation Debit Credit 2014 2015 SHOW LIST OF ACCOUNTS LINK TOTEXT Prepare the income tax expense section of the income statementfor 2014, beginning with âIncome before income taxes.â (Enternegative amounts using either a negative sign preceding the numbere.g. -45 or parentheses e.g. (45).) Remmers Corporation IncomeStatement (Partial) Year ended December 31, 2014 $ $ $
Unlock all answers
