Jam File Preview poration began operations on 1/1/24. On 12/31/24, Jamison has pretax accounting income of...

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Jam File Preview poration began operations on 1/1/24. On 12/31/24, Jamison has pretax accounting income of $55,000. Jamison has the following differences for tax purposes. a) b) c) d) Jamison uses a different method of depreciation for tax purposes than accounting, allowing additional depreciation of $70,000 to be deducted in computing taxable income. The additional depreciation is expected to start reversing in 2027. Estimated warranty costs of $50,000 were deducted in computing accounting income. Actual expenditures for warranties in 2024 were $35,000, and the remainder will be deductible for tax purposes when the expenditures occur, expected next year. Jamison earned $25,000 interest on tax-free municipal bonds. In 2024, Jamison received a $40,000 cash payment for rent of a portion of its warehouse currently not being used. The payment covered the rent for 2024 and 2025. Jamison has enacted tax rates of 21% for 2024, 23% for 2025, and 24% thereafter. Prepare the 2024 tax journal entry needed by Jamison. (Show all relevant computations.) Jam File Preview poration began operations on 1/1/24. On 12/31/24, Jamison has pretax accounting income of $55,000. Jamison has the following differences for tax purposes. a) b) c) d) Jamison uses a different method of depreciation for tax purposes than accounting, allowing additional depreciation of $70,000 to be deducted in computing taxable income. The additional depreciation is expected to start reversing in 2027. Estimated warranty costs of $50,000 were deducted in computing accounting income. Actual expenditures for warranties in 2024 were $35,000, and the remainder will be deductible for tax purposes when the expenditures occur, expected next year. Jamison earned $25,000 interest on tax-free municipal bonds. In 2024, Jamison received a $40,000 cash payment for rent of a portion of its warehouse currently not being used. The payment covered the rent for 2024 and 2025. Jamison has enacted tax rates of 21% for 2024, 23% for 2025, and 24% thereafter. Prepare the 2024 tax journal entry needed by Jamison. (Show all relevant computations.)

Answer rating: 100% (QA)

To prepare the 2024 tax journal entry for Jamison we need to account for the tax effects of the given differences between accounting income and taxabl... View the full answer