Question
In: Accounting
Prior to 2019, the accounting income and taxable income for Bridgeport Corporation were the same. On...
Prior to 2019, the accounting income and taxable income for Bridgeport Corporation were the same. On January 1, 2019, the company purchased equipment at a cost of $576,000. For accounting purposes, the equipment was to be depreciated over 9 years using the straight-line method. For income tax purposes, the equipment was subject to a CCA rate of 20% (half-year rule applies for 2019). Bridgeport’s income before tax for accounting purposes for 2020 was $1,892,000. The company was subject to a 25% income tax rate for all applicable years and anticipated profitable years for the foreseeable future. Bridgeport Corporation follows IFRS.
a) Calculate taxable income and taxes payable for 2020.
| Taxable income, 2020 | $ | |
| Taxes payable, 2020 | $ |
b) Prepare the journal entries to record 2020 income taxes (current and deferred). (If no entry is required, select "No Entry" )
|
Account Titles and Explanation |
Debit |
Credit |
|
(To record current income taxes) |
||
|
(Record the net change from 2019 to 2020.) |
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Prior to 2019, the accounting income and taxable income for Sunland Corporation were the same. On...
Prior to 2019, the accounting income and taxable income for
Sunland Corporation were the same. On January 1, 2019, the company
purchased equipment at a cost of $468,000. For accounting purposes,
the equipment was to be depreciated over 9 years using the
straight-line method. For income tax purposes, the equipment was
subject to a CCA rate of 20% (half-year rule applies for 2019).
Sunland’s income before tax for accounting purposes for 2020 was
$1,895,000. The company was subject to a...
in 2019 Lisa and Fred a married couple had taxable income of $312,000 if they were...
in 2019 Lisa and Fred a married couple had taxable
income of $312,000 if they were to file separate tax returns Lisa
would have reported taxable income of 129000 and Fred would have
reported taxable income of 183000 what is the couple's marriage
penalty or benefit?
In 2019, Lisa and Fred, a married couple, have taxable income of $300,000. If they were...
In 2019, Lisa and Fred, a married couple, have taxable income of
$300,000. If they were to file separate tax returns, Lisa would
have reported taxable income of $200,000 and Fred would have
reported taxable income of $100,000.
A- What is the couple’s marriage penalty or benefit? (Enter a
penalty as a positive and a benefit as a negative)
n 2019, Jasmine and Thomas, a married couple, have taxable
income of $145,000. If they were to file separate tax returns,...
The following information has been obtained for Sarasota Corporation. 1. Prior to 2020, taxable income and...
The following information has been obtained for Sarasota
Corporation.
1.
Prior to 2020, taxable income and pretax financial income were
identical.
2.
Pretax financial income is $1,769,000 in 2020 and $1,323,000 in
2021.
3.
On January 1, 2020, equipment costing $1,236,000 is purchased.
It is to be depreciated on a straight-line basis over 5 years for
tax purposes and over 8 years for financial reporting purposes.
(Hint: Use the half-year convention for tax purposes, as
discussed in Appendix 11A.)
4....
The following information has been obtained for Culver Corporation. 1. Prior to 2017, taxable income and...
The following information has been obtained for Culver
Corporation. 1. Prior to 2017, taxable income and pretax financial
income were identical. 2. Pretax financial income is $1,649,000 in
2017 and $1,476,000 in 2018. 3. On January 1, 2017, equipment
costing $1,140,000 is purchased. It is to be depreciated on a
straight-line basis over 5 years for tax purposes and over 8 years
for financial reporting purposes. (Hint: Use the half-year
convention for tax purposes, as discussed in Appendix 11A.) 4....
Taxable income and pretax financial income would be identical for Bridgeport Co. except for its treatments...
Taxable income and pretax financial income would be identical
for Bridgeport Co. except for its treatments of gross profit on
installment sales and estimated costs of warranties. The following
income computations have been prepared.
Taxable income
2019
2020
2021
Excess of revenues over expenses (excluding two temporary
differences)
$149,000
$192,000
$96,700
Installment gross profit collected
7,600
7,600
7,600
Expenditures for warranties
(5,500
)
(5,500
)
(5,500
)
Taxable income
$151,100
$194,100
$98,800
Pretax financial income
2019
2020
2021
Excess of...
1. In 2019, Nighthawk Corporation, a calendar year C corporation, has $5,620,000 of adjusted taxable income...
1. In 2019, Nighthawk Corporation, a calendar year C
corporation, has $5,620,000 of adjusted taxable income and $168,600
of business interest income. Nighthawk has no floor plan financing
interest. The business interest expense for the year is
$2,248,000.
a. Assume that Nighthawk has average gross
receipts for the prior three-year period of $30,400,000.
Determine Nighthawk's current-year deduction for business
interest.
$_______________________
b. Assume that Nighthawk has average gross
receipts for the prior three-year period of $18,000,000.
Determine Nighthawk's current-year deduction...
Assume that Timberline Corporation has 2019 taxable income of $270,000 for purposes of computing the §179...
Assume that Timberline Corporation has 2019 taxable income of
$270,000 for purposes of computing the §179 expense. It acquired
the following assets in 2019: (Use MACRS Table 1, Table 2, Table 3,
Table 4 and Table 5.)
Purchase
Asset
Date
Basis
Furniture (7-year)
December 1
$
480,000
Computer equipment (5-year)
February 28
120,000
Copier (5-year)
July 15
60,000
Machinery (7-year)
May 22
510,000
Total
$
1,170,000
Required:
a-1. What is the maximum amount of §179 expense
Timberline may deduct for...
Assume that Timberline Corporation has 2019 taxable income of $244,000 for purposes of computing the §179...
Assume that Timberline Corporation has 2019 taxable income of
$244,000 for purposes of computing the §179 expense. It acquired
the following assets in 2019: (Use MACRS Table 1, Table 2, Table 3,
Table 4 and Table 5.)
Purchase
Asset
Date
Basis
Furniture (7-year)
December 1
$
454,000
Computer equipment (5-year)
February 28
94,000
Copier (5-year)
July 15
34,000
Machinery (7-year)
May 22
484,000
Total
$
1,066,000
b. What would Timberline’s maximum depreciation
deduction be for 2019 assuming no bonus depreciation?...
Assume that Timberline Corporation has 2019 taxable income of $244,000 for purposes of computing the §179...
Assume that Timberline Corporation has 2019 taxable income of
$244,000 for purposes of computing the §179 expense. It acquired
the following assets in 2019: (Use MACRS Table 1, Table 2, Table 3,
Table 4 and Table 5.)
Purchase
Asset
Date
Basis
Furniture (7-year)
December 1
$
454,000
Computer equipment (5-year)
February 28
94,000
Copier (5-year)
July 15
34,000
Machinery (7-year)
May 22
484,000
Total
$
1,066,000
b. What would Timberline’s maximum depreciation
deduction be for 2019 assuming no bonus depreciation?...
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