At the end of 2007, its first year of operations, the Slater Company reported a book value for its depreciable assets of $40,000 for financial reporting purposes and $33,000 for income tax purposes. The company earned taxable income of $97,000 during 2007. The company is subject to a 30% income tax rate and no change has been enacted for future years. The depreciation was the only temporary difference between taxable income and pretax financial income. Required 1. Prepare the income tax journal entry of the Slater Company at the end of 2007. 2. Show how the deferred taxes would be reported on the Slater Company’s December 31, 2007 balance sheet.
reported a book value for its depreciable assets of $ 40,000 for financial reporting purposes and $ 33,000 for income tax purposes. Slater earned taxable income of $ 97,000 during 2016. The company is subject to a 30% income tax rate,...
property) for $200,000 for use in its business. In 2011 and 2012, respectively, Blue took $642 and $5,128 of cost recovery. These amounts were incorrect because Blue applied the wrong percentages (i.e., those for...
purchases and sales transactions for May. Required 1. Compute cost of goods available for sale and the number of units available for sale. 2. Compute the number of units in ending inventory . 3. Compute the cost...
Walmart Inc. are presented in Appendix E. The complete annual reports of Amazon and Walmart, including the notes to the financial statements, are available at each company\'s respective website....
redemption, Caramel distributes $145,000 in exchange for 1,000 of its shares. At the time of the redemption, Caramel has paid-in capital of $800,000 and E & P of $300,000. Calculate the reduction to Caramel\'s E & P as...
Alpine Chemical 7% bonds, which mature in 10 years. She asks you to analyze the company to determine the riskiness of the bonds. Required:1. Using the data provided in the accompanying financial statements,...
end of 2007 the company reported taxable income of $9,800 and pretax financial income of $11,200, because of a single temporary difference. The income tax rate for the current year is 30%, but Congress has enacted a 40% tax rate for...
and pretax financial income of $10,600. The difference is due to depreciation for tax purposes in excess of depreciation for financial reporting purposes. The income tax rate for the current year is 40%, but Congress has enacted...