For 2021, a company has pretax accounting income of $218,000. Included in accounting income is $21,800...
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For 2021, a company has pretax accounting income of $218,000. Included in accounting income is $21,800 in warranty expense that is not deductible for tax purposes. Additionally, tax depreciation exceeds financial accounting depreciation by $32,700. Assume a tax rate of 30%. Use the information above to answer the questions below. What is taxable income? Taxable income: Required information For 2021, a company has pretax accounting income of $218,000. Included in accounting income is $21,800 in warranty expense that is not deductible for tax purposes. Additionally, tax depreciation exceeds financial accounting depreciation by $32,700. Assume a tax rate of 30%. Use the information above to answer the questions below. The journal entry to record income taxes in 2021 will include a: ✓(Click to select) credit to Deferred Tax Liability for $11,990 debit to Deferred Tax Asset for $6,540 credit to Deferred Tax Liability for $6,540 debit to Deferred Tax Asset for $9,810 For 2021, a company has pretax accounting income of $218,000. Included in accounting income is $21,800 in warranty expense that is not deductible for tax purposes. Additionally, tax depreciation exceeds financial accounting depreciation by $32,700. Assume a tax rate of 30%. Use the information above to answer the questions below. What is taxable income? Taxable income: Required information For 2021, a company has pretax accounting income of $218,000. Included in accounting income is $21,800 in warranty expense that is not deductible for tax purposes. Additionally, tax depreciation exceeds financial accounting depreciation by $32,700. Assume a tax rate of 30%. Use the information above to answer the questions below. The journal entry to record income taxes in 2021 will include a: ✓(Click to select) credit to Deferred Tax Liability for $11,990 debit to Deferred Tax Asset for $6,540 credit to Deferred Tax Liability for $6,540 debit to Deferred Tax Asset for $9,810
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Solution Answer 1 Calculation of taxable income Pretax accounting income 218000 Add Warranty expense ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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