Alimond Corporation, organized on January 3, 2021. had pretax accounting Income of $31 million and taxable...

 

Transcribed Image Text:

Alimond Corporation, organized on January 3, 2021. had pretax accounting Income of $31 million and taxable income of $41 million for the year ended December 31, 2021. The 2021 tax rate Is 25%. The only difference between accounting Income and taxable Income is estimated product warranty costs. Assume that expected payments and scheduled tax rates (based on recently enacted tax leglslation) are as follows: $4 million 2 million 2 million 2 million 2022 35% 2023 2024 35% 35% 2025 Required: 1. Determine the amounts necessary to record Allmond's Income taxes for 2021 and prepare the appropriate Joumal entry. 2 What is Allmond's 2021 net Income? Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Determine the amounts necessary to record Allmond's income taxes for 2021. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Enter all amounts as positive values.) (S in millions) Tax Rate % Таx 5 Recorded as: Pretax accounting income 31.0 Warranty costs reversing in: 2022 2023 %3D 2024 2025 Total deferred tax amount Income taxable in current year C Required 1Calculation Required 1 GJ > Alimond Corporation, organized on January 3, 2021. had pretax accounting Income of $31 million and taxable income of $41 million for the year ended December 31, 2021. The 2021 tax rate Is 25%. The only difference between accounting Income and taxable Income is estimated product warranty costs. Assume that expected payments and scheduled tax rates (based on recently enacted tax leglslation) are as follows: $4 million 2 million 2 million 2 million 2022 35% 2023 2024 35% 35% 2025 Required: 1. Determine the amounts necessary to record Allmond's Income taxes for 2021 and prepare the appropriate Joumal entry. 2 What is Allmond's 2021 net Income? Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Determine the amounts necessary to record Allmond's income taxes for 2021. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). Enter all amounts as positive values.) (S in millions) Tax Rate % Таx 5 Recorded as: Pretax accounting income 31.0 Warranty costs reversing in: 2022 2023 %3D 2024 2025 Total deferred tax amount Income taxable in current year C Required 1Calculation Required 1 GJ >

Answer rating: 100% (QA)

1 Amounts necessary to record Allmonds income taxes for 2021 S in millions Tax rate x ... View the full answer