Week 2 Accounting III Homework - Income Tax Payable...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Problem 19-1, Page 1 of 2, 11/20/2010, 07:01:54 Name: Tanya Marquez Problem: Course: Intermediate Accounting III Date: 4-Nov-10 $120,000 This difference will reverse in equal amounts of $30,000 over the years 2011-2014 2. Interest received on municipal bonds was $10,000 3. Rent collected in advance on January 1, 2010, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, for book purposes. 4. The tax rates are 40% for 2010 and 35% for 2011 and subsequent years. 5. Income taxes of $320,000 are due per the tax return for 2010. 6. No deferred taxes existed at the beginning of 2010. Instructions: x(.40) = $320,000 Taxes due for 2010 x = $320,000 / .40 x = $800,000 Taxable Income for 2010 Taxable income from part (a) $800,000 Excess depreciation 120,000 Municipal interest 10,000 Unearned rent (40,000) Pretax financial income for 2010 $890,000 payable for 2010 and 2011. Assume taxable income was $980,000 in 2011. 2010 Income Tax Expense 348,000 Deferred Tax Asset ($40,000 x .35) 14,000
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Income Tax Payable ($800,000 x .40) 320,000 Deferred Tax Liability ($120,000 x .35) 42,000 2011 Income Tax Expense 317,666 Deferred Tax Liability 30,000 Income Tax Payable ($980,000 x .35) 343,000 Deferred Tax Asset ($40,000/3 x .35) 4,666 P19-1, Three Differences, No Beginning Deferred Taxes, Multiple Rates The following information is available for Remmers Corporation for 2010. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by (a) Compute taxable income for 2010. (b) Compute pretax financial income for 2010. (c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes Problem 19-1, Page 2 of 2, 11/20/2010, 07:01:54 Income before income taxes $890,000 Income tax expense Current $320,000 Deferred 28,000 348,000 Net income $1,238,000 (d) Prepare the income tax expense section of the income statement for 2010, beginning with "Income before income taxes."...
View Full Document

This note was uploaded on 11/19/2010 for the course ACCT 557 ACC 557 taught by Professor None during the Spring '10 term at Keller Graduate School of Management.

Page1 / 2

Week 2 Accounting III Homework - Income Tax Payable...

This preview shows document pages 1 - 2. Sign up to view the full document.

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