The following information is available for Windsor Corporation for 2016 (its first year of operations).
1, Excess of tax depreciation over book depreciation, $43,800. This $43,800 difference will reverse equally over the years 2017â2020. 2. Deferral, for book purposes, of $18,100 of rent received in advance. The rent will be recognized in 2017. 3. Pretax financial income, $302,100. 4. Tax rate for all years, 30%.
a) Compute taxable income for 2016.
Taxable Income $____
b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2016.
c) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, assuming taxable income of $309,200.
The following information is available for Windsor Corporation for 2016 (its first year of operations).
| 1, | Excess of tax depreciation over book depreciation, $43,800. This $43,800 difference will reverse equally over the years 2017â2020. | |
| 2. | Deferral, for book purposes, of $18,100 of rent received in advance. The rent will be recognized in 2017. | |
| 3. | Pretax financial income, $302,100. | |
| 4. | Tax rate for all years, 30%. |
a) Compute taxable income for 2016.
Taxable Income $____
b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2016.
c) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, assuming taxable income of $309,200.
Related questions
I have a question. I got right Deferred Tax Asset and $12,350Income Tax Payable $173,740 but I got wrong Income Tax Expense andDeferred tax liability.
Bridgeport Inc. has two temporary differences at the end of 2016.The first difference stems from installment sales, and the secondone results from the accrual of a loss contingency. Bridgeportâsaccounting department has developed a schedule of future taxableand deductible amounts related to these temporary differences asfollows.
| 2017 | 2018 | 2019 | 2020 | |
| Taxable Amounts | 42,700 | 45,900 | 64,300 | 81,400 |
| Deductible Amounts | (13,600) | (18,900) | ||
| TOTALS | 42,700 | 32,300 | 45,400 | 81,400 |
As of the beginning of 2016, the enacted tax rate is 34% for2016 and 2017, and 38% for 2018â2021. At the beginning of 2016, thecompany had no deferred income taxes on its balance sheet. Taxableincome for 2016 is $511,000. Taxable income is expected in allfuture years.
Prepare the journal entry to record income tax expense, deferredincome taxes, and income taxes payable for 2016.
| 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.
|
