Hopkins Co. at the end of 2010, its first year of operations, prepared a reconciliation between pretar financial income and taxable income asfollows:Pretax financial incomeS 750.000Estimated litigation expense1,000,000Extra depreciation for taxes(1.500.000)Taxable income5.250.000The estimated litigation expense of $1,000,000 will be deductible in 2011 when it is expected to be paid. Use of the depreciable assets willresult in taxable amounts of $500,000 in each of the next three years. The income tax rate is 30% for all years.Income tax payable isSelect one:a. $75,000.b. S0.C $150,000.d. $225,000.

In the above question Pre- tax financail income= $750,000 Estimate litigation expense = 1,000,000…

Hopkins Co. at the end of 2010, its first year of operations, prepared a reconoliation between pretar financial income and taxable income as follows Pretax financial income $ 750.000 Estimated litigation expense 1,000,000 Extra depreciation for taves (1.500 000 5. 250000 The estimated Stigation expense of $1,000,000 will be deductible in 2011 when it is expected to be paid. Use of the depreciable assets will Taxable income result in taxable amounts of $500,000 in each of the next three years. The income tax rate is 30% for all years Income tax payable is Select one: a $75,000. b50. CC $150.000. d. $225,000.

Hopkins Co. at the end of 2010, its first year of operations, prepared a reconoliation between pretar financial income and taxable income as follows Pretax financial income $ 750.000 Estimated litigation expense 1,000,000 Extra depreciation for taves (1.500 000 5. 250000 The estimated Stigation expense of $1,000,000 will be deductible in 2011 when it is expected to be paid. Use of the depreciable assets will Taxable income result in taxable amounts of $500,000 in each of the next three years. The income tax rate is 30% for all years Income tax payable is Select one: a $75,000. b50. CC $150.000. d. $225,000.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 4BCRQ

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Use the following information for questions 18 and 19. Hopkins Co. at the end of 2010, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 750,000 Estimated litigation expense 1,000,000 Extra depreciation for taxes (1,500,000) Taxable income $ 250,000 The estimated litigation expense of $1,000,000 will be deductible in 2011 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $500,000 in each of the next three years. The income tax rate is 30% for all years. Income tax payable is Select one: a. $150,000. b. $0. c. $225,000. O d. $75,000.
33. At the end of 2017, its first year of operations, Staccato Company prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Estimated litigation expenses Excess depreciation for taxes Taxable income 4,500,000 6,000,000 (9,000,000) 1,500,000 The estimated litigation expense of P6,000,000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of P3,000,000 in each of the next three years. The income tax rate is 30% for all years. Assuming no payment yet at the end of 2017? been paid for income taxes, what is the income tax payable a. shate b. 450,000 900,000 1,350,000 с. d. 34. Refer to previous problem, what is the amount of deferred tax asset recorded at December 31, 2017? а. 450,000
Mathis Co. at the end of 2014, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 800,000 Estimated litigation expense 2,000,000 Installment sales (1,600,00) Taxable income $ 1,200,000 The estimated litigation expense of $2,000,000 will be deductible in 2016 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $800,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $800,000 current and $800,000 noncurrent. The income tax rate is 40% for all years. 3. The deferred tax liability - current to be recognized is a. $240,000 b. $480,000 c. $320,000 4. $640,000
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XYZ Co. at the end of 2018, its first year of operations, prepared a reconciliation betweenpretax financial income and taxable income as follows:Pretax financial income € 750,000Estimated expenses deductible for taxes when paid 1,200,000Extra depreciation (1,350,000)Taxable income € 600,000Estimated warranty expense of €800,000 will be deductible in 2019, €300,000 in 2020, and€100,000 in 2021. The use of the depreciable assets will result in taxable amounts of €450,000in each of the next three years.Instructions(a) Prepare a table of future taxable and deductible amounts.(b) Prepare the journal entry to record income tax expense, deferred income taxes, andincome taxes payable for 2018, assuming an income tax rate of 40% for all years.
Zeff Company prepared the following reconciliation for the · first year of operations: 1,600,000 Pretax financial income Nontaxable interest received Long-term loss accrual in excess of deductible amount Depreciation in excess of financial depreciation ( 50,000) 100,000 ( 250,000) 1,400,000 Taxable income (Tax rate is 30%) What amount should be reported as total income tax expense? a. 495,000 b. 480,000 c. 465,000 d. 420,000 What amount should be reported as deferred tax liability a. 90,000 b. 45,000 с. 75,000 d. 30,000 What amount should be reported as deferred tax asset? a. 30,000 b. 90,000 c. 45,000 d. 75,000
Mathis co. at the end of 2016, its first year of operations, prepared reconciliation between pretax financial income and taxable income as follows: Pretax financial income 500,000 Estimated litigation expense 1,250,000 Installment sales (1,000,000) Taxable income 750,000 The estimated litigation expense of P1,250,000 will be deductible in 2016 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of P500,000 in each of the next two years. The estimated liability for litigation is classified as non-current and the installment accounts receivable are classified as P500,000 current and P500,000 noncurrent. The income tax rate is 30% for all years. The income tax expense is?