Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in...
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Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in thousands) Pretax accounting income Taxable income 2024 $ 380 420 2025 $ 380 360 2026 $ 340 380 The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when the performance obligation is satisfied. The income tax rate is 25% each year. Times-Roman anticipates profitable operations in the future. Required: 1. What is the balance sheet account that gives rise to a temporary difference in this situation? 2. For each year, indicate the cumulative amount of the temporary difference at year-end. 3. Determine the balance in the related deferred tax account at the end of each year. Is it a deferred tax asset or a deferred tax liability? Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 What is the balance sheet account that gives rise to a temporary difference in this situation? 1. What is the balance sheet account that gives rise to a temporary difference in this situation? < Req 1 Req 2 and 3 > Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in thousands) Pretax accounting income Taxable income 2024 $ 380 420 2025 $ 380 2026 $ 340 360 380 The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when the performance obligation is satisfied. The income tax rate is 25% each year. Times-Roman anticipates profitable operations in the future. Required: 1. What is the balance sheet account that gives rise to a temporary difference in this situation? 2. For each year, indicate the cumulative amount of the temporary difference at year-end. 3. Determine the balance in the related deferred tax account at the end of each year. Is it a deferred tax asset or a deferred tax liability? Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 2. For each year, indicate the cumulative amount of the temporary difference at year-end. 3. Determine the balance in the related deferred tax account at the end of each year. Is it a deferred tax asset or a deferred tax liability? Note: Enter all amounts as positive values. Enter your answers in thousands (i.e., 5,000 should be entered as 5). 2. Cumulative temporary difference 3. Beginning of 2024 End of 2024 End of 2025 End of 2026 < Req 1 Req 2 and 3 Show less Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in thousands) Pretax accounting income Taxable income 2024 $ 380 420 2025 $ 380 360 2026 $ 340 380 The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when the performance obligation is satisfied. The income tax rate is 25% each year. Times-Roman anticipates profitable operations in the future. Required: 1. What is the balance sheet account that gives rise to a temporary difference in this situation? 2. For each year, indicate the cumulative amount of the temporary difference at year-end. 3. Determine the balance in the related deferred tax account at the end of each year. Is it a deferred tax asset or a deferred tax liability? Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 What is the balance sheet account that gives rise to a temporary difference in this situation? 1. What is the balance sheet account that gives rise to a temporary difference in this situation? < Req 1 Req 2 and 3 > Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in thousands) Pretax accounting income Taxable income 2024 $ 380 420 2025 $ 380 2026 $ 340 360 380 The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscriptions being reported for tax purposes in the year received, but reported in the income statement in later years when the performance obligation is satisfied. The income tax rate is 25% each year. Times-Roman anticipates profitable operations in the future. Required: 1. What is the balance sheet account that gives rise to a temporary difference in this situation? 2. For each year, indicate the cumulative amount of the temporary difference at year-end. 3. Determine the balance in the related deferred tax account at the end of each year. Is it a deferred tax asset or a deferred tax liability? Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3 2. For each year, indicate the cumulative amount of the temporary difference at year-end. 3. Determine the balance in the related deferred tax account at the end of each year. Is it a deferred tax asset or a deferred tax liability? Note: Enter all amounts as positive values. Enter your answers in thousands (i.e., 5,000 should be entered as 5). 2. Cumulative temporary difference 3. Beginning of 2024 End of 2024 End of 2025 End of 2026 < Req 1 Req 2 and 3 Show less
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Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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