Question
In: Accounting
The information that follows pertains to Richards Refrigeration, Inc.: At December 31, 2018, temporary differences existed...
The information that follows pertains to Richards Refrigeration, Inc.:
- At December 31, 2018, temporary differences existed between the financial statement carrying amounts and the tax bases of the following:
| ($ in millions) | |||||||||||
| Carrying Amount |
Tax Basis |
Future Taxable (Deductible) Amount |
|||||||||
| Buildings and equipment (net of accumulated depreciation) | $ | 142 | $ | 101 | $ | 41 | |||||
| Prepaid insurance | 61 | 0 | 61 | ||||||||
| Liability—loss contingency | 36 | 0 | (36 | ) | |||||||
- No temporary differences existed at the beginning of 2018.
- Pretax accounting income was $211 million and taxable income was $145 million for the year ended December 31, 2018. The tax rate is 40%.
Required:
1. Complete the following table given below and
prepare the appropriate journal entry to record income taxes for
2018
2. What is the 2018 net income?
Solutions
ekkarill92 answered 4 months agoRelated Solutions
The information that follows pertains to Richards Refrigeration, Inc.: At December 31, 2018, temporary differences existed...
The information that follows pertains to Richards Refrigeration,
Inc.:
At December 31, 2018, temporary differences existed between the
financial statement carrying amounts and the tax bases of the
following:
($ in millions)
Carrying
Amount
Tax
Basis
Future Taxable
(Deductible)
Amount
Buildings and equipment (net of accumulated depreciation)
$
140
$
100
$
40
Prepaid insurance
60
0
60
Liability—loss contingency
35
0
(35
)
No temporary differences existed at the beginning of 2018.
Pretax accounting income was $210 million and...
The information that follows pertains to Richards Refrigeration, Inc.: At December 31, 2018, temporary differences existed...
The information that follows pertains to Richards Refrigeration,
Inc.:
At December 31, 2018, temporary differences existed between the
financial statement carrying amounts and the tax bases of the
following:
($ in millions)
Carrying
Amount
Tax
Basis
Future Taxable
(Deductible)
Amount
Buildings and equipment (net of
accumulated depreciation)
$
140
$
100
$
40
Prepaid insurance
60
0
60
Liability—loss contingency
35
0
(35
)
No temporary differences existed at the beginning of 2018.
Pretax accounting income was $210 million and...
The information that follows pertains to Esther Food Products: At December 31, 2018, temporary differences were...
The information that follows pertains to Esther Food
Products:
At December 31, 2018, temporary differences were associated with
the following future taxable (deductible) amounts
Depreciation
$
60,000
Prepaid expenses
17,000
Warranty expenses
(12,000
)
No temporary differences existed at the beginning of 2018.
Pretax accounting income was $80,000 and taxable income was
$15,000 for the year ended December 31, 2018.
The tax rate is 40%.
he information that follows pertains to Esther Food Products: At December 31, 2018, temporary differences were...
he information that follows pertains to Esther Food
Products:
At December 31, 2018, temporary differences were associated with
the following future taxable (deductible) amounts:
Depreciation
$
54,000
Prepaid expenses
23,000
Warranty expenses
(20,000
)
No temporary differences existed at the beginning of 2018.
Pretax accounting income was $77,000 and taxable income was
$20,000 for the year ended December 31, 2018.
The tax rate is 40%.
Required:
Complete the following table given below and prepare the
appropriate journal entry to record...
On December 31, 2019, Novak Inc. has taxable temporary differences of $2.21 million and a deferred...
On December 31, 2019, Novak Inc. has taxable temporary
differences of $2.21 million and a deferred tax liability of
$618,800. These temporary differences are due to Novak having
claimed CCA in excess of book depreciation in prior years. Novak’s
year end is December 31. At the end of December 2020, Novak’s
substantively enacted tax rate for 2020 and future years was
changed to 30%. For the year ended December 31, 2020, Novak’s
accounting loss before tax was $494,500. The following...
The following information pertains to PCX Company: Temporary differences for the year 2016 are summarized below....
The following information pertains to PCX Company:
Temporary differences for the year 2016 are summarized
below.
Expenses deducted in the tax return, but not included in the
income statement:
Depreciation: $60,000
Prepaid Expense: $8,000
Expenses reported in the income statement, but not deducted in
the tax return:
Warranty Expense: $9,000
No temporary differences existed at the beginning of 2016.
Pretax accounting income was $67,000
The tax rate is 30%.
Required-
Prepare the journal entry to record the tax provision for...
The following information pertains to the B, Inc. entity for (fiscal) year ended December 31, 2015....
The following information pertains to the B, Inc. entity for
(fiscal) year ended December 31, 2015. Based upon the information
provided, please present the Statement of Net Cash Flow for B, Inc.
for the year ended December 31, 2015.
Net Income for the year was $26,000
Depreciation Expense for the year was $ 21,000
A/R increased by $ 5,000 during the year
Merchandise Inventory decreased by $ 29,000 during the
year
ShortTerm Notes Payable showed a net decrease of $...
Selected information from the adjusted trial balance of Warmers Inc. as of December 31, 2019, follows:...
Selected information from the adjusted trial balance of Warmers
Inc. as of December 31, 2019, follows:
Department A
Department B
Total
Merchandise Inventory, January 1
$
43,000
$
13,000
$
56,000
Merchandise Inventory, December 31
53,000
10,800
63,800
Sales
493,800
329,200
823,000
Sales Returns and Allowances
4,938
3,292
8,230
Purchases
190,000
105,000
295,000
Freight In
480
480
960
Purchases Returns and Allowances
1,400
480
1,880
Sales Salaries Expense
98,000
48,000
146,000
Advertising Expense
14,800
4,800
19,600
Store Supplies Expense
640...
Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows....
Forester Company has five products in its inventory. Information
about the December 31, 2018, inventory follows. Product Quantity
Unit Cost Unit Replacement Cost Unit Selling Price A 1,000 $ 28 $
30 $ 34 B 900 33 29 36 C 500 21 20 26 D 600 25 22 24 E 700 32 30 31
The cost to sell for each product consists of a 10 percent sales
commission. The normal profit percentage for each product is 35
percent of the...
Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows:...
Forester Company has five products in its inventory. Information
about the December 31, 2018, inventory follows:
product
quantity
unit cost
unit replacement cost
unit selling price
a
1000
$10
$12
$16
b
800
15
11
18
c
600
3
2
8
d
200
7
4
6
e
600
14
13
13
The cost to sell for each product consists of a 15 percent sales
commission. The normal profit percentage for each product is 40
percent of the selling price.
(1)...
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