Harley Davidson Motorcycles has pretax income of $1,000,000 in years 2017, 2018, and 2019. NOT inclusive...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Harley Davidson Motorcycles has pretax income of $1,000,000 in years 2017, 2018, and 2019. NOT inclusive of this amount, they sell and collect 2 year extended warranties in the amount of $200,000 in 2017. Based on past experience, it is deemed that 60% of this amount is earned in the year subsequent to cash payment (2018) and 40% is earned in the final year of the warranty (2019). Required: Schedule Financial Income and Taxable Income; prepare journal entries to record tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. Assume a corporate tax rate of 40% for all years. Harley Davidson Motorcycles has pretax income of $1,000,000 in years 2017, 2018, and 2019. NOT inclusive of this amount, they sell and collect 2 year extended warranties in the amount of $200,000 in 2017. Based on past experience, it is deemed that 60% of this amount is earned in the year subsequent to cash payment (2018) and 40% is earned in the final year of the warranty (2019). Required: Schedule Financial Income and Taxable Income; prepare journal entries to record tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. Assume a corporate tax rate of 40% for all years.
Expert Answer:
Answer rating: 100% (QA)
Particulars 2017 2018S 2019 Financial income A 1200000 1000000 1000000 Taxable income B 1000000 1120... View the full answer
Related Book For
Microeconomics
ISBN: 9781319105563
3rd edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
Posted Date:
Students also viewed these accounting questions
-
Prepare journal entries to record these transactions: (a) Benton Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No...
-
Prepare journal entries to record these transactions: (a) Blaska Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No...
-
Prepare journal entries to record its following production activities. 1. Purchased $80,000 of raw materials on credit. 2. Used $34,000 of direct materials in production. 3. Used $41,000 of indirect...
-
On April 12, 2011, BAM Technologies floated a $100 million bond issue. Each $1,000 bond entitled the bondholder to receive $50 every six months (October 12th and April 12th) until April 12, 2041, at...
-
Wal-Mart uses LIFO to account for its inventories. Recent financial statements were used to compile the following information (dollar figures are in millions): Average inventory (throughout the...
-
Valdez Coffee Company is considering the cash acquisition of Mountain Creamery, Inc., for $750,000. The acquisition is expected to result in incremental cash flows of $100,000 in the first year, and...
-
Are there any limits to how little inventory a company should carry? Is it possible to entirely eliminate all inventories?
-
The following expenditures relating to plant assets were made by Devereaux Company during the first 2 months of 2014. 1. Paid $5,000 of accrued taxes at time plant site was acquired. 2. Paid $400...
-
The factory producing high - tech devices decided to examine the production equipment. Eleven devices have been examined, and the number of defects per device has been recorded in the following...
-
Hannah Turnbull manages Elegant Suites, a hotel in a small town 10 miles inland from Florida's beautiful gulf coast. Elegant Suites has a capacity of 320 suites and offers a small, but well managed,...
-
Q: Integrate foumule by Cauchy's integral Counterciockuwise areund he Crcle wi th vadius- as z +11 = 1 7 centre at -4 / Crcle U centre at -1 circle with radivs =1.4 f Centre at i %3D ti Z ti = 1-4...
-
(a) What does the following algorithm do? function: F(x, y) input: nonnegative integers x and y if y = 0: return 0 z = F(x, FLOOR(y/2)) if y is even: return 2z else: return x+2z
-
29. You are standing on a balcony on the 15th floor of the Bank of America building in San Francisco. The balcony is 72 m above the ground; the top of the building is 52 floors (237 m) high. You...
-
Captain Jack Sparrow has been marooned on an island in the Atlantic by his crew, and decides to build a raft to escape. The wind seems quite steady, and first blows him due east for 11 km, and then...
-
7.33 moles of a diatomic gas are at a temperature of 317 K. What is the internal energy of the gas?
-
A call option with a strike price of $55 can be bought for $4. What will be your net profit if you sell the call and the stock price is $52 when the call expires? (2) If a corporation pays a dividend...
-
Wood Dollars $250 $275 2) "Against the Grain" offers hand-made wooden furniture at somewhat-reasonable prices. Each item is made by an in-house employee woodworker. Using only the clues that follow,...
-
You have accepted the engagement of auditing the financial statements of the C. Reis Company, a small manufacturing firm that has been your auditee for several years. Because you were busy writing...
-
Simon, a self-made millionaire, owns the worlds most extensive collection of artisan garden gnomes. His collection is very attractive to thieves, so Simon takes costly measures to protect his...
-
Consider the souffl bakers Gaston and Pierre, described in Problem 3. Suppose Gaston and Pierre are each faced with the choice of baking 3 or 4 souffls each morning. a. Calculate the profits each...
-
Juliette spends $48 each month on Oreo cookies (which cost $2 per package) and salt and vinegar chips (which cost $3 per bag). a. With chips on the horizontal axis, draw Juliettes budget constraint,...
-
Describe and explain the circular flow model. Scarcity, Trade-Offs, and Production Possibilities CHAPTER 3
-
Describe and explain the three economic questions that every society faces.
-
Illustrate economic growth on a production possibilities curve.
Study smarter with the SolutionInn App