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16 Ch. 16 Templates Class - Name Required 1 Current Year...

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Name: Date: Ex. 16-11 Required 1 Current Year Future Years Pretax Accounting Income $300,000 Permanent differences: Municipal bond interest (40,000) - Temporary differences: Depreciation expense (10,000) 10,000 Taxable income (tax return) $250,000 Enacted tax rate 40% 40% Current tax liability $100,000 Deferred tax liability $4,000 Deferred tax liability: Ending balance (balance currently needed) $4,000 Less: beginning balance - Change needed to achieve desired balance $4,000 Date Account Titles / Explanations Debit Credit Income tax expense 104,000 Income tax payable 100,000 Deferred tax liability 4,000 Tax Depreciation: $40,000 X 50% $20,000 Straight-Line Depreciation: $40,000/4years 10,000 Excess tax depreciation the first year $10,000 Required 2 Pretax income $300,000 Income tax expense 104,000 Net income $196,000
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Name: Date: Ex: 16-21 Required 1 Current Year Future Year 2009 Deduct. Amt. Operating loss $(375) Loss carryforward 375 (375) Enacted tax rate 40% 40% Current tax liability $- Deferred tax asset $(150) DTA Ending balance (balance currently needed) $150 Less: beginning balance - Change needed to achieve desired balance $150 Date Account Titles / Explanations Debit Credit Deferred tax asset 150 Income tax benefit 150 Required 2 Operating loss before income taxes $(375) Income tax benefit - carryforward 150 Net operating loss $(225) Since the weight of available evidence suggests future taxable income sufficient to benefit from future deductible amounts from the operating loss carryforward, no valuation allowance is needed.
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Name: Date: Ex: 16-22 Required 1 Prior Years
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