Wildcat Corporation is a calendar-year, accrual-basis, C-corporation that was incorporated and began business on January 1, 2021. Its address is 550 S. Limestone St., Lexington, Kentucky 40506, and its employer identification number is 40-6657098. An income statement and balance sheet are available later in this assignment

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Prepare pages 1 and 6 of Wildcat’s Form 1120 (do not turn in pages 2-5).

Prepare Schedule M-3 (Parts II and III; skip Part I).

Prepare the journal entry, in accordance with U.S. GAAP, to update Wildcat’s income tax expense and adjust the balances in its deferred tax assets and liabilities. Also, prepare a disclosure indicating the amounts of current income tax expense and deferred income tax expense.
 

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Wildcat Corporation Income Statement for Year Ending December 31, 2021 Sales revenues Less: Sales allowances & returns Net revenues Less: Cost of goods sold Gross margin Less: Operating expenses Advertising Bad debts* Charitable contributions b Depreciation. Insurance d. Interest Miscellaneous f Rent Repairs & maintenance Salaries & wages 8 Taxesh Utilities Net operating income Dividend & interest income Income tax payments Net income Other assets Total assets Accounts payable Other current liabilities Note payablem Total liabilities $ 59,246 30,076 3,734 89,967 114,598 16,437 43,201 152,536 23,640 Common stock Retained earnings 2 Total equities Total liabilities & equities Cash Accounts receivable (net of $17,083 allowance for doubtful accounts) Inventory Investments Depreciable property (net of $89,967 accumulated depreciation) 664,17553GE 55,201 147,072 Wildcat Corporation Balance Sheet for December 31, 2021 $ 8,961,386 (193,268) $8,768,118 (6.996,354) $ 1,771,764 See the notes for the income statement and balance sheet on the next page. (1.399.883) $ 371,881 3,369 (50,000) 325.250 $ 276,692 727,622 347,322 292,207 816,711 lik 44.862 $2,505.416 $ 523,008 40,148 460,010 $1,023,166 $ 1,200,000 282,250 $1,482,250 $2.505.416 48 Wildcat Corporation Income Statement for Year Ending December 31, 2021 Sales revenues Less: Sales allowances & returns Net revenues Less: Cost of goods sold Gross margin Less: Operating expenses Advertising Bad debts* Charitable contributions b Depreciation. Insurance d. Interest Miscellaneous f Rent Repairs & maintenance Salaries & wages 8 Taxesh Utilities Net operating income Dividend & interest income Income tax payments Net income Other assets Total assets Accounts payable Other current liabilities Note payablem Total liabilities $ 59,246 30,076 3,734 89,967 114,598 16,437 43,201 152,536 23,640 Common stock Retained earnings 2 Total equities Total liabilities & equities Cash Accounts receivable (net of $17,083 allowance for doubtful accounts) Inventory Investments Depreciable property (net of $89,967 accumulated depreciation) 664,17553GE 55,201 147,072 Wildcat Corporation Balance Sheet for December 31, 2021 $ 8,961,386 (193,268) $8,768,118 (6.996,354) $ 1,771,764 See the notes for the income statement and balance sheet on the next page. (1.399.883) $ 371,881 3,369 (50,000) 325.250 $ 276,692 727,622 347,322 292,207 816,711 lik 44.862 $2,505.416 $ 523,008 40,148 460,010 $1,023,166 $ 1,200,000 282,250 $1,482,250 $2.505.416 48

Answer rating: 100% (QA)

Debit Credit Income Tax Expense 325250 Deferred Tax Asset 0 Deferred Tax Liability 325250 Income Tax Expense 325250 Deferred Tax Asset 0 Deferred Tax ... View the full answer