At the beginning of 2016, Norris Company had a deferred tax liability of $6,300, because of...

At the beginning of 2016, Norris Company had a deferred tax liability of $6,300, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income tax rate is 30% for 2015 and 2016, but in 2015 Congress enacted a 38% tax rate for 2017 and future years. Norris’s accounting records show the following pretax items of financial income for 2016: income from continuing operations, $122,300 (revenues of $353,300 and expenses of $231,000); gain on disposal of Division F, $23,000; loss from operations of discontinued Division F, $10,200; and prior period adjustment, $15,200, due to an error that understated revenue in 2015. All of these items are taxable; however, financial depreciation for 2016 on assets related to continuing operations exceeds tax depreciation by $4,000. Norris had a retained earnings balance of $160,900 on January 1, 2016, and declared and paid cash dividends of $33,600 during 2016. Required: 1. Prepare Norris’s income tax journal entry at the end of 2016. 2. Prepare Norris’s 2016 income statement. 3. Prepare Norris’s 2016 statement of retained earnings. 4. Show the related income tax disclosures on Norris’s December 31, 2016, balance sheet.

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At the beginning of 2016, Norris Company had a deferred tax liability of $6,400, because of...

At the beginning of 2016, Norris Company had a deferred tax liability of $6,400, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income tax rate is 30% for 2015 and 2016, but in 2015 Congress enacted a 37% tax rate for 2017 and future years. Norris’s accounting records show the following pretax items of financial income for 2016: income from continuing operations, $119,300 (revenues of $351,000 and expenses of $231,700);...

At the beginning of 2016, Norris Company had a deferred tax liability of $6,600, because of...

At the beginning of 2016, Norris Company had a deferred tax liability of $6,600, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income tax rate is 30% for 2015 and 2016, but in 2015 Congress enacted a 39% tax rate for 2017 and future years. Norris’s accounting records show the following pretax items of financial income for 2016: income from continuing operations, $120,000 (revenues of $353,200 and expenses of $233,200);...

At the beginning of 2016, Norris Company had a deferred tax liability of $6,400, because of...

At the beginning of 2016, Norris Company had a deferred tax liability of $6,400, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income tax rate is 30% for 2015 and 2016, but in 2015 Congress enacted a 39% tax rate for 2017 and future years. Norris’s accounting records show the following pretax items of financial income for 2016: income from continuing operations, $121,600 (revenues of $353,400 and expenses of $231,800);...

Robinson Company had a net deferred tax liability of $34,000 at the beginning of the year,...

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At December 31, 2016, Belmont Company had a net deferred tax liability of $375,000. An explanation...

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Exercise 18-23 At the end of 2016, Concord Corporation reported a deferred tax liability of $43,000....

Exercise 18-23 At the end of 2016, Concord Corporation reported a deferred tax liability of $43,000. At the end of 2017, the company had $245,000 of temporary differences related to property, plant, and equipment. Depreciation expense on this property, plant, and equipment has been lower than the CCA claimed on Concord’s income tax returns. The resulting future taxable amounts are as follows: 2018 $79,000 2019 63,000 2020 56,000 2021 47,000 $245,000 The tax rates enacted as of the beginning of...

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At the beginning of 2016, Norris Company had a deferred tax liability of $6,300, because of...

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At the beginning of 2016, Norris Company had a deferred tax liability of $6,400, because of...

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