P19-1 - P191 (Three Differences, No Beginning Deferred...

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P19-1 (Three Differences, No Beginning Deferred Taxes, Multiple Rates) The following information is available for Remmers Corporation for 2012. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This difference will  reverse in equal amounts of $30,000 over the years 2013-2016. 2. Interest received on municipal bonds was $10,000. 3. Rent collected in advance on January 1, 2012, 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 2012 and 35% for 2013 and subsequent years. 5. Income taxes of $320,000 are due per the tax return for 2012. 6. No deferred taxes existed at the beginning of 2012. Compute taxable income for 2012. X(0.40)=$320,000 taxes due for 2012X=$320,000 ÷ 0.40X=
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P19-1 - P191 (Three Differences, No Beginning Deferred...

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