can you please help me to answer this question about Comprehensive Tax Deferral Problem.

ACC 302/502 Homework #2 Comprehensive Tax Deferral Problem Allied Corp - Unadjusted Trial Balance as of 12/31/12 Item Cash Prepaid Expense DTA Machine Accum Dep - Machine Income Tax Payable DTL Unearned Revenue Common Stock Additional Paid In-Capital Retained Earnings (1/1/12) Sales Revenue Cost of Goods Sold Sales and General Expense Depreciation Expense Officer's Life Insurance Prem Interest on Municipal Bonds Fine paid to the EPA Income Tax Expense - 2012 Debit 4240 640 224 1920 0 0 0 0 0 0 0 0 8000 2720 480 400 0 960 ???? 19,584 Credit 0 0 0 0 0 0 0 0 0 960 0 ????? 0 144 0 320 0 800 0 1040 0 1120 0 14880 0 0 0 0 0 0 0 0 0 320 0 0 0 0 19,584 Enacted Tax Rates 2011 20% 2012 20% 2013 30% 2014 40% 2015 40% Assumptions: 1. Allied det. On 12/31/2012 that a $400 loss on a lawsuit was probable. Payment of $400 was made early in 2013, as expected. 2. Allied paid for lawn care in advance in November 2012: $640 for the 2013 and 2014seasons. ($400 for 2013, $240 for 2014) 3. A $800 collection for future services was made in 2011. Allied provided services worth $480 in 2012; the remainder will be earned in 2014 4. The machine was purchased on 1/2/11. This is the only fixed asset. Depreciation is straight-line over four years. 5. Assume that Current Tax Law allows half of the value of the assets to be depreciated in the first year, with the balance to be depreciated straight line Hints and Discussion 1. The retained earnings in the trial balance above is as of 1/1/12. When you are all done with figuring out the taxes, you will make a closing entry. This will update the retained earnings to the 1/1/13 figure. 2. Note that there are tax rate changes. The effect of these tax rate changes must be reflected in the 2012 tax expense per our class discussion. THIS WILL AFFECT THE CALCULATED VALUES OF YOUR DTA/DTLs. 3. If you were to make a balance sheet out of the trial balance above, it would NOT be balanced. That is because retained earnings has not yet been closed. The imbalance is the current net income calculation - but that is not going to be the correct net income for the year - you still have work to do as shown below! Assignments: 1. What is the pre-tax income for the year 2012? 2. What is the taxable book income for the year 2012? 3. What is the taxable income for the year 2012? 4. What is the 2012 tax payable? 5. What new Temporary Differences and DTA / DTL have been created? 6. What are the tax accounting journal entries for 2012? 7. Classify the DTA / DTLs created as Current / Non Current for the 12/31/12 Balance Sheet 8. Create a 2012 Income statement 9. What is the 2012 closing journal entry? 10. Create a post closing trial balance. 11. Create a 12/31/12 balance sheet