In 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 portion of the rent collected in 2011 was $50 million. Taxable income is $180 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 QuestionsRefer to the situation described in BE 16-4. Suppose the unearned portion of the rent collected was $40 million at the end of 2012. Taxable income is $200 million. Prepare the appropriate journal entry to record income ...J-Matt, Inc., had pretax accounting income of $291,000 and taxable income of $300,000 in 2011. The only difference between accounting and taxable income is estimated product warranty costs for sales this year. Warranty ...Alvis Corporation reports pretax accounting income of $400,000, but due to a single temporary difference, taxable income is only $250,000. At the beginning of the year, no temporary differences existed.Required:1. Assuming a ...Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by:Required:For each situation, determine taxable income assuming pretax accounting income is ...The information that follows pertains to Esther Food Products:a. At December 31, 2011, temporary differences were associated with the following future taxable (deductible) amounts:Depreciation ...... $60,000Prepaid expenses ...
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