Actual quarterly earnings and quarterly estimates of annual earnings for Sloan Company for the year ended December
Question:
Actual quarterly earnings and quarterly estimates of annual earnings for Sloan Company for the year ended December 31, 2008 are as follows:
The combined state and federal tax rate for 2008 is 30%. Sloan Company estimated it would have permanent differences between accounting income and taxable income during 2008. Each quarter’s estimate of these annual differences is provided in the following table:
The actual amount of permanent differences for 2008 were environmental penalties, $14,000 dividend exclusion, $55,000.
Required:
Prepare journal entries to record Sloan Company’s 2008 quarterly income taxprovisions.
Actual Quarterly Earnings Quarterly Estimates of Quarter Annual Earnings $95,000 85,000 92,000 96,000 $400,000 370,000 370,000 N/A Estimated Permanent Differences Estimate at End of Quarter Penalty for Pollutionm Dividend Exclusion $14,000 14,000 14,000 $40,000 40,000 50,000
Step by Step Answer:
First Quarter Estimated Annual Earnings 400000 Less Net Permanent Differences 26000 Estimated Taxabl...View the full answer
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Accounting questions
-
Prepare journal entries to record these transactions: (a) Rangel 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) Echo 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) Benton Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No...
-
Division S of ABC Company makes a part that it sells to other companies. Data on that part appear below: Selling price on the intermediate market $30 per unit Variable costs per unit $22 per unit...
-
Calculate the missing values for the promissory notes described Face value ($) Issue Interest date Date of sale Discount rate (%) Proceeds (S) rate (%) Term 3 months June 17 6000 May 17
-
Consider the function f(x)=x 3 3x 2 +2x1 . Calculate the first and second derivatives of the function. Then, find the critical points and determine whether they are local minima, local maxima, or...
-
The Weather Channel reports that it is a hot, muggy day with an air temperature of \(90^{\circ} \mathrm{F}\), a \(10 \mathrm{mph}\) breeze out of the southwest, and bright sunshine with a solar...
-
Tadoussac Inc. and Sturgis Ltd. are plumbing supply companies operating in eastern Canada. Both companies are looking for investment to help with their expansion plans. You work for a small venture...
-
Examine the role of modular and portable process intensification technologies in decentralized manufacturing and distributed chemical production, discussing their potential to enable on-demand...
-
The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...
-
Bismac Industries is a diversified company whose operations are conducted in five product lines, L, M, N, O, and P. Segmented financial information is to be included with the December 31, 2008 annual...
-
The following statement is an excerpt from ASC 270-10-45-1, 2 [paragraphs 9 and 10 of APB Opinion No. 28, "Interim Financial Reporting"]: Interim financial information is essential to provide...
-
Suppose that there is a database system that never fails. Is a recovery manager required for this system?
-
The following table contains the historic returns from large stocks and long-term Treasury bonds over the last 20 years. Analyze the risk-return trade-off that would have characterized these...
-
How does an incubator support the Venture development process, and what motivates the incubator to do so?
-
Analyze two cases of lateral earth pressure such as the lateral earth pressure at rest for the first one whereas the second case will be the analysis of active earth pressure. For each case,...
-
A group of 110 students sat an aptitude test, their resulting scores are presented: Scores; 77 64 58 71 72 65 65 77 71 61 62 66 60 64 75 66 66 58 66 75 74 64 65 62 71 69 59 69 73 65 71 75 64 65 59 72...
-
Toby is a first-year student in college during 2020.During 2020, his parents, Susan and Joseph Handy had adjusted gross income (AGI) of $152,000, and Toby's eligible expenses were $8,500. What is the...
-
Sketch the graph over [0, 2]. () = 2 sin 4
-
Dawson Companys balance sheet information at the end of 2019 and 2020 is as follows: Additional information: The company did not issue any common stock during 2020. Required : Next Level Fill in the...
-
In a double-slit interference pattern, it is the amplitudes of the light waves from each slit that add, not the light intensities. Usually, in the analysis of interference patterns, the radiation...
-
What are the differences in accounting for a forward contract used as (a) a cash flow hedge and (b) a fair value hedge of a foreign currency denominated asset or liability?
-
What are the differences in accounting for a forward contract used as (a) a cash flow hedge and (b) a fair value hedge of a foreign currency denominated asset or liability?
-
What are the differences in accounting for a forward contract used as a fair value hedge of (a) a foreign currency denominated asset or liability and (b) a foreign currency firm commitment?
-
Lamda corporation wants to acquire another company within its industry for $100m and it expects the acquisition to contribute to its free cash flow by $5m the first year, and this contribution is...
-
Dewan INC. has several divisions, each with a manager responsible for the operations of the division. Each division of Dewan controls product design, sales, pricing, operating costs, and profits.....
-
Welch Corporation just paid its annual dividend of $2.00 per share. The firm is expected to grow at a rate of 15 percent for the next three years and then at 6 percent per year thereafter. The...
Study smarter with the SolutionInn App