In 2016, Ryan Management collected rent revenue for 2017 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as income in the period tenants occupy rental property. But for income tax reporting it is taxed when collected. The deferred portion of the rent collected in 2016 was $40 million. Taxable income is $100 million. No temporary differences existed at the beginning of the year, and the tax rate is 30%. Suppose the deferred portion of the rent collected was $30 million at the end of 2017. Taxable income is $120 million.
Prepare the appropriate journal entry to record income taxes. (If no entry is required for a particular event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
| In 2016, Ryan Management collected rent revenue for 2017 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as income in the period tenants occupy rental property. But for income tax reporting it is taxed when collected. The deferred portion of the rent collected in 2016 was $40 million. Taxable income is $100 million. No temporary differences existed at the beginning of the year, and the tax rate is 30%. Suppose the deferred portion of the rent collected was $30 million at the end of 2017. Taxable income is $120 million.
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Related questions
In 2016, Ryan Management collected rent revenue for 2017 tenantoccupancy. For financial reporting, the rent is recorded asdeferred revenue and then recognized as income in the periodtenants occupy rental property. But for income tax reporting it istaxed when collected. The deferred portion of the rent collected in2016 was $80 million. Taxable income is $260 million. No temporarydifferences existed at the beginning of the year, and the tax rateis 40%. Suppose the deferred portion of the rent collected was $70million at the end of 2017. Taxable income is $280 million. |
Prepare the appropriate journal entry to record income taxes.(If no entry is required for a particular event, select "Nojournal entry required" in the first account field. Enter youranswers in millions (i.e., 10,000,000 should be entered as10).) |
| In 2013, Ryan Management collected rent revenue for 2014 tenant occupancy. For financial reporting, the rent is recognized as income in the period earned, but for income tax reporting it is taxed when collected. The unearned portion of the rent collected in 2013 was $30 million and $20 million at the end of 2014. Taxable income is $130 million. No temporary differences existed at the beginning of the year, and the tax rate is 30%.
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