Question: A company reports pretax accounting income of 10 million but because of a
A company reports pretax accounting income of $10 million, but because of a single temporary difference, taxable income is $12 million. No temporary differences existed at the beginning of the year, and the tax rate is 40%. Prepare the appropriate journal entry to record income taxes.
Answer to relevant QuestionsIn 2011, Ryan Management collected rent revenue for 2012 tenant occupancy. For financial reporting, the rent is recognized as income in the period earned, but for income tax reporting it is taxed when collected. The unearned ...Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $800,000 and with an expected useful life of four years and no residual value. For tax purposes, the deduction is 40%, ...Refer to the situation described in BE 16-15. Suppose Southeast Airlines prepares its financial statements according to IFRS. What is the amount of income tax expense that Southeast should report in its income statement?Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences:The enacted tax rate is 40%.Required:For each situation, determine ...Bronson Industries reported a deferred tax liability of $8 million for the year ended December 31, 2010, related to a temporary difference of $20 million. The tax rate was 40%. The temporary difference is expected to reverse ...
Post your question