Sol Limited, reported earnings of $510,000 in 20X8. The company has $91,000 of depreciation expense this...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sol Limited, reported earnings of $510,000 in 20X8. The company has $91,000 of depreciation expense this year, and claimed CCA of $142,000. The tax rate was 25%. At the end of 20X7, there was a $122,000 loss carryforward that was not recorded because use was considered less than probable. The company also reported a deferred tax liability of $71,000 caused by capital assets with a net book value of $1,310,000 and UCC of $1,010,000. The tax rate had been 20% in 20x7. Required: What is the amount of income tax expense in 20x8? Tax expense Prepare the income tax entry or entries. View transaction list Check my Journal entry worksheet 1 Record the entry income tax expense. 2 Note: Enter debits before credits. Date: 20X8 Record entry General Journal Clear entry Debit Credit View general journal D 1 Record the entry loss carryforward. Date 20X8 2 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal Sol Limited, reported earnings of $510,000 in 20X8. The company has $91,000 of depreciation expense this year, and claimed CCA of $142,000. The tax rate was 25%. At the end of 20X7, there was a $122,000 loss carryforward that was not recorded because use was considered less than probable. The company also reported a deferred tax liability of $71,000 caused by capital assets with a net book value of $1,310,000 and UCC of $1,010,000. The tax rate had been 20% in 20x7. Required: What is the amount of income tax expense in 20x8? Tax expense Prepare the income tax entry or entries. View transaction list Check my Journal entry worksheet 1 Record the entry income tax expense. 2 Note: Enter debits before credits. Date: 20X8 Record entry General Journal Clear entry Debit Credit View general journal D 1 Record the entry loss carryforward. Date 20X8 2 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal
Expert Answer:
Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
Posted Date:
Students also viewed these accounting questions
-
Company sold equipment with a net book value of $110,000 for $130,000 in cash. This equipment was originally purchased for $200,000. What will be the net effect of this transaction on the net cash...
-
Given an asset with a net book value (NBV) of $25,000, what are the after-tax proceeds for a firm in the 34 percent tax bracket if this asset is sold for $35,000 cash? What are the after-tax proceeds...
-
Prepare the journal entries required in the General Capital Assets and General Long-Term Liabilities accounts of Percy County to record the following transactions. Indicate whether any gains and...
-
What is true about business cycles? Multiple select question. They vary in duration and intensity. They follow an identical pattern. They are made up of alternating rises and declines. "Ups" are...
-
Assume that Kilgore Realty, Inc., borrowed $80,000 from First City Bank and Trust. In recording the transaction, Kilgore erroneously recorded the receipt of $80,000 as an increase in cash, $80,000,...
-
Prepare the journal entries to record payroll for the employee and record the employer's contribution. Assume the employee was paid immediately. For transactions with more than one credit, enter the...
-
The time-dependent axial stress, \(\sigma_{x}(t)\) and the time-dependent circumferential stress, \(\sigma_{y}(t)\) in the wall of the filament-wound, thin-walled composite pressure vessel shown in...
-
Margie Anunson was just hired as the assistant treasurer of Northshore Stores, a specialty chain store company that has nine retail stores concentrated in one metropolitan area. Among other things,...
-
Gravel is being dumped from a conveyor belt at a rate of 10 cubic feet per minute. It forms a pile in the shape of a right circular cone whose base diameter and height are always the same. How fast...
-
Donna Shader, manager of the Winter Park Hotel, is considering how to restructure the front desk to reach an optimum level of staff efficiency and guest service. At present, the hotel has five clerks...
-
P Company purchased an 80% interest in and obtained control of S Company for P848,000 on July 1, 2016. S Company's statement of financial position on that date was as follows: Assets Cash Receivables...
-
Indicate which of the five payment options has the lowest break-even point and provide the break-even point in dollars and units. Option: BEPU: BEP$: Indicate the new break-even point in dollars and...
-
A logit mode choice model has the following linear disutility equation for the difference between auto and bus utilities of: (10 points) U=-0.016Cost-0.090IVT-0.0160OVT+1.943A-1.22 Where IVT =...
-
a. The number of employed people equals the size of the labor force minus the num- ber of unemployed people, as shown in the accompanying table. Employed (thousands) Change (thousands) Region April...
-
A respiration monitor has a flexible loop of copper wire, which wraps about the chest. As the wearer breathes, the radius of the loop of wire increases and decreases. When a person in the Earth's...
-
Provide a feasibility study based on a scenario in Health Care. You have been asked by the CEO of your organization to propose a project or program to address a specific need, and to develop a...
-
Explain the Producer-Consumer problem.
-
Clark, PA, has been engaged to perform the audit of Kent Ltd.s financial statements for the current year. Clark is about to commence auditing Kents employee pension expense. Her preliminary enquiries...
-
Current assets for GK Company totalled $ 100,000, and the current ratio was 1.5. Assume that the following transactions were completed: (1) Paid $ 6,000 for merchandise purchased on short- term...
-
Define corporation and identify its primary advantages.
-
The Java House is developing its annual financial statements for 2014. The following amounts were correct at December 31, 2014: cash, $ 58,800; investment in shares of PAX Corporation (long term), $...
-
Explain the role of robotics and smart factories in manufacturing, services, and supply chains.
-
What is CAD/CAE? Provide one nontextbook example.
-
Research and write a short onetwo page paper on recent advances in robotics and their applications.
Study smarter with the SolutionInn App