Scenario 3 For the year ended December 31, 2021, Star Engineering Inc. reported a pretax accounting...

 

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Scenario 3 For the year ended December 31, 2021, Star Engineering Inc. reported a pretax accounting income of $900,000. Additional information related to Star Engineering Inc. is as follows. Interest income on Municipal Bonds Depreciation claimed on the 2021 tax return in excess of depreciation on the income statement Carrying value of depreciable assets in excess of tax basis at year-end. Warranty expenses reported on the income statement Actual warranty expenses in 2021 Star Engineering Inc.'s income tax rate is 40%. On January 1, 2021, the company records indicated zero and $10,000 in its deferred tax asset and deferred tax liability accounts, respectively. You are required to Scenario 4 1. Determine the amount necessary to record income taxes for 2021 and prepare appropriate journal entry. 2. What is Star Engineering Inc's net income for 2021. Projected Benefit Obligations Balance, January 1 Service Cost Interest Cost $30,000 $5,000 A&A has a noncontributory, defined benefit pension plan. On December 31, 2021, A&A received the following information. Benefits paid Balance, December 31 Plan Assets Balance, January 1 $50,000 $25,000 $15,000 Actual Return on plan assets Contributions 202120 Benefits paid Balance, December 31 ($ in millions) $120 20 12 (9) $143 $80 9 20 (9) $100 The expected long-term rate of return on plan assets was 10% There was no prior service cost and a negligible loss-AOCI on January 1, 2021. You are required to 1. Determine A&A's pension expense for 2021 2. Prepare journal entries to record pension expenses, funding, and payment for 2021. Scenario 3 For the year ended December 31, 2021, Star Engineering Inc. reported a pretax accounting income of $900,000. Additional information related to Star Engineering Inc. is as follows. Interest income on Municipal Bonds Depreciation claimed on the 2021 tax return in excess of depreciation on the income statement Carrying value of depreciable assets in excess of tax basis at year-end. Warranty expenses reported on the income statement Actual warranty expenses in 2021 Star Engineering Inc.'s income tax rate is 40%. On January 1, 2021, the company records indicated zero and $10,000 in its deferred tax asset and deferred tax liability accounts, respectively. You are required to Scenario 4 1. Determine the amount necessary to record income taxes for 2021 and prepare appropriate journal entry. 2. What is Star Engineering Inc's net income for 2021. Projected Benefit Obligations Balance, January 1 Service Cost Interest Cost $30,000 $5,000 A&A has a noncontributory, defined benefit pension plan. On December 31, 2021, A&A received the following information. Benefits paid Balance, December 31 Plan Assets Balance, January 1 $50,000 $25,000 $15,000 Actual Return on plan assets Contributions 202120 Benefits paid Balance, December 31 ($ in millions) $120 20 12 (9) $143 $80 9 20 (9) $100 The expected long-term rate of return on plan assets was 10% There was no prior service cost and a negligible loss-AOCI on January 1, 2021. You are required to 1. Determine A&A's pension expense for 2021 2. Prepare journal entries to record pension expenses, funding, and payment for 2021.