2007 - Ch 19 - Ch 19 E19-2 PTFI Temporary Differences Less:...

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Unformatted text preview: Ch 19 E19-2 PTFI Temporary Differences Less: (Depreciation BB>TB) Rent Revenue (BB>TB) Taxable Income Total Current Tax Liability B) Temp Difference Machine (BB>TB by 40) Unearned Rent Taxable Amount Income Tax Expense (plug) Deferred Tax Asset Income Tax Payable Deferred Taxes Liability C) Temp Difference Machine (BB>TB by 40) Unearned Rent Taxable Amou 40% Tax Rate 2006 300,000 (40,000) 20,000 280,000 112,000 2007 ???? A) 325,000 130,000 End of '06 FTA DTL FDA DTA 40,000 40,000 20,000 20,000 40,000 20,000 16,000 8,000 120,000 8,000 112,000 16,000 End of '07 FTA DTL FDA DTA 30,000 30,000 0 0 30,000 0 12,000 134,000 4,000 0C 1C Income Tax Expense (plug) Deferred Tax Liability Deferred Tax Asset Income Tax Payable Deferred Tax Asset 8,000 8,000 E19-12 Defered Tax Expense Deferred Tax Asset @ end of 07 Deferred Tax Asset @ beg. Of 07 Deferred Tax Expense (Benefit) 2C 3C 8,000 130,000 Deferred Tax Liability 2006 2007 16,000 4,000 12,000 Computation of Income Tax Expense Deferred Tax Asset @ end of 07 38,000 Deferred Tax Asset @ beg. Of 07 20,000 Deferred Tax Expense (Benefit) Current Tax expense for 2007 Income Tax Expense for 2007 * $60,000 / 40% * $20,000 / 40% 42,000 105,000 56,000 18,000 4C 5C 6C 38,000 20,000 (18,000) 92,000 60,000 32,000 Deferred Tax Liability @ end of 07 Deferred Tax Liability @ beg. Of 07 Defered Tax Expense (Benefit) Beginning of 2007 Future Taxable Amount Future Detuctible Amount Income Tax Payable A) B) Pretax Financial Income Income Tax Expense Deferred Tax Asset Income Tax Payable Deferred Tax Liabilities * $105,000 x 40% (18,000) 42,000 24,000 $ 150,000 $ 50,000 42,000 32,000 Page 1 of 3 Ch 19 C) Income before Income Taxes Current Deferred Net Income 42,000 24,000 105,000 66,000 39,000 D) Effective Tax Rate Statutory 40% 40% E19-23 Year 2005 2006 2007 2008 A) PTI (Loss) 120,000 90,000 (280,000) 220,000 Tax Rate Tax Paid (Saved) 34% 40,800 34% 30,600 38% (106,400) 38% 83,600 40,800 40,800 30,600 30,600 71,400 26,600 7C 8C 31-Dec-05 Income Tax Expense Income Tax Payable 31-Dec-06 Income Tax Expense Income Tax Payable 31-Dec-07 Income Tax Refund Receivable Deferred Tax Asset Benefit Due to Loss Carryback Benefit Due to Loss Carryforward 71,400 26,600 (280,000) B) Operating loss before income taxes Income tax benefit: Benefit due to loss carryback Benefit due to loss carryforward Net loss 71,400 26,600 98,000 (182,000) C) 31-Dec-07 Income Tax Refund Receivable Deferred Tax Asset Benefit Due to Loss Carryback Benefit Due to Loss Carryforward Benefit Due to Loss Carryforward Allowance to Reduce Deferred Tax Asset to Expected Realizable Value * 26,600 x 25% 31-Dec-08 Income Tax Expense Deferred Tax Asset Income Tax Payable 71,400 26,600 71,400 26,600 6,650 6,650 83,600 26,600 57,000 Page 2 of 3 Ch 19 D) Operating Loss before Income Taxes Income Tax Benefit Benefit due to loss carryback Benefit Due to Loss carryforward Net Loss (280,000) 71,400 19,950 91,350 (188,650) P19-4 Pretax Financial Income Temporary Differences: Excess depreciation per tax Excess Warranty Expense per books Sales Permanent Differences Life Insurance Expense Interest Revenue Pollution Fines PTFI + Perm Diff Tax on Perm Diff 850,000 255,000 (20,000) (6,000) 50,000 15,000 (25,000) (7,500) 9,000 2,700 (4,000) (1,200) 4,200 1,260 859,200 257,760 259,260 End of '07 FTD DTL FTA DTA 20,000 20,000 25,000 25,000 50,000 50,000 45,000 50,000 13,500 15,000 257,760 15,000 13,500 259,260 9C 10C A) B) Machine Receiveables Warranties Taxable Amount Income Tax Expense Deferred Taxable Asset Deferred Tax Liability Income Tax Payable P19-9 PTFI Temporary Differences Depreciation (TB > BB) Warranties Construction Contracts - GP Total Permanent Differences Pollution Fine Interest Revenue Taxable Income Tax Rate Income Tax Payable 100,000 (20,000) 3,000 (30,000) 53,000 3,500 (1,400) 55,100 40% 22,040 DTA 3,000 DTL 20,000 30,000 50,000 40% 20,000 A) $ Warranties Depreciation Construction Contract End of '07 3,000 20,000 30,000 B) Deferred Taxes Payable C) Income Tax Expense Deferred Tax Asset Deferred Taxes Payable Income Tax Payable 21,200 40,840 1,200 3,000 40% 1,200 20,000 22,040 Page 3 of 3 ...
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This note was uploaded on 04/18/2008 for the course ACCT 3113 taught by Professor Chasteen during the Spring '08 term at Oklahoma State.

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