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

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
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.
Background image of page 2
Name: Date: Ex: 16-22 Required 1 Prior Years Current Year 2007 2008 2009
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/23/2009 for the course MGMT 401 taught by Professor Merlot during the Spring '09 term at Indiana Institute of Technology.

Page1 / 6

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

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online