Data for Pueblo in 2019: / GAAP (I/S) Pretax income $82,000; enacted tax rates for all years
Question:
Data for Pueblo in 2019: / GAAP (I/S) Pretax income $82,000; enacted tax rates for all years is 21%. v Assume that 2019 beginning balances of Deferred Tax Assets is $600 and of Deferred Tax Liabilities $200. v GAAP depreciation is $14,000. MACRS depreciation allowance for taxes is $18,000. ~ Municipal bond interest revenue in 2019 was $2,500. Accrued warranty expenses in 2019 were $12,000. Cash outlays were $5,000. v The company uses the equity method to account for a 25% investment in Aire. In 2019, Aire reported $20,000 income and declared and paid $8,000 dividends. v In 2018, 5900 profits under project revenue were recognized over time for GAAP. The project was completed in 2019. • Complete the table. Determine taxable income for 2019. Item 2018 2019 DTA DTL • Give the entry for income taxes in 2019. Support with DTA and DTL T- accounts. Debit- Accounts and Amounts Credit- Accounts and Amounts • Give the Income Statement and Balance Sheet presentation with respect to income taxes for 2019. Income Statement: Balance Sheet:
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones