JG Ltd. has been in business for five years and incurs a loss of $520,000 in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
JG Ltd. has been in business for five years and incurs a loss of $520,000 in 20x15. The company has no temporary differences. The history of the company's earnings since they began operations is as follows: Тахаble Taxes paid Year Income (recovered) (loss) $300,000 -$150,000 $330,000 S80,000 $114,000 -57,000 125,400 30,400 20x11 20x12 20x13 20x14 The tax rate has been constant at 38%. Required: 1. Prepare journal entries to record the recovery of taxes and any journal entries necessary for any loss carry forwards. Assume probability of recovery is greater than 50% 2. Prepare journal entries to record the recovery of taxes and any journal entries necessary for any loss carry forwards. Assume probability of recovery is less than 50% JG Ltd. has been in business for five years and incurs a loss of $520,000 in 20x15. The company has no temporary differences. The history of the company's earnings since they began operations is as follows: Тахаble Taxes paid Year Income (recovered) (loss) $300,000 -$150,000 $330,000 S80,000 $114,000 -57,000 125,400 30,400 20x11 20x12 20x13 20x14 The tax rate has been constant at 38%. Required: 1. Prepare journal entries to record the recovery of taxes and any journal entries necessary for any loss carry forwards. Assume probability of recovery is greater than 50% 2. Prepare journal entries to record the recovery of taxes and any journal entries necessary for any loss carry forwards. Assume probability of recovery is less than 50%
Expert Answer:
Answer rating: 100% (QA)
PART1 Year Particulars Debit Credit 2015 Income tax receivable carry back 155... View the full answer
Related Book For
College Accounting Chapters 1-30
ISBN: 978-0077862398
14th edition
Authors: John Price, M. David Haddock, Michael Farina
Posted Date:
Students also viewed these accounting questions
-
Prepare journal entries to record the following. (a) Gomez Company retires its delivery equipment, which cost $41,000. Accumulated depreciation is also $41,000 on this delivery equipment. No salvage...
-
Prepare journal entries to record the following. (a) Perez Company retires its delivery equipment, which cost $44,000. Accumulated depreciation is also $44,000 on this delivery equipment. No salvage...
-
1. When 30% of a number is added to the number, the result is 78. a) x = 78.30(78) b) x +.30 = 78 c) x +.30x = 78 d) 30x = 78
-
(5 points) In a study of purchasing behavior at a small shop, it was found that the probabaty that a purchase is more than $5 is 0.29, the probability that a customer will pay with a credit card is...
-
What are four purposes for cost allocation?
-
The current sections of Blues Traveler Co. balance sheets at December 31, 2007 and 2008 are presented below. Blues Travelers net income for 2008 was $163,000. Depreciation expense was $30,000....
-
Stanford Corporation began the year with 150,000 shares of common stock outstanding. On March 1, an additional 10,000 shares of common stock were issued. On August 1, another 16,000 shares of common...
-
You would probably not think of paying $1,000 for a $300 refrigerator, but it happens, especially when low-income people with little education sign contracts to buy appliances or furniture on time...
-
1.5 inches The 0.35 lbf ball is shot from the spring device shown. The spring has a stiffness k = 12 lbf/in. The plate reduces the spring to 1.5 inches in length, when its neutral length is 4 inches....
-
Cary Company manufactures two models of industrial componentsa Standard model and an Advanced Model. It has provided the following information with respect to these two products: Standard Advanced...
-
What does it mean to say a consumer's preference relation is "convex" (resp., "strictly convex", "strictly monotone")? Define each of these 3 precisely. (b) Say the consumer has preferences that are...
-
Margo, a calendar year taxpayer, paid $1,580,000 for new machinery (seven-year recovery property) placed in service on August 1, 2023. Required: a. Assuming that the machinery was the only tangible...
-
1. What is the relationship of change in internal energy, work, and heat? Explain the significance in terms of energy. 2. Explain why it is impossible to have an engine which is 100% efficient. 3....
-
Both Country Delta and Country Theta initially have the real GDP per capita equal to $300. Country Delta experiences no economic growth, while Country Theta grows at a sustained rate of 2 percent. In...
-
Identify a community - based program ( ( off - campus ) ) that focuses on addressing health issues. The program may focus on behavior change, changing local environments for health, or developing...
-
5. A mass on a spring is pulled down from equilibrium and released. Draw a graph of one cycle of the displacement graph for the mass. Next to the displacement graph draw one cycle of the...
-
A hockey team gas two goalies, six defenders, eight wingers, and four centers. If the team randomly select five players to attend a charity function, what is the probability that no goalies are...
-
Horse serum containing specific antibody to snake venom has been a successful approach to treating snakebite in humans. How do you think this anti-venom could be generated? What are some advantages...
-
On June 30 the general ledger of Bentleys New York, a clothing store, showed a balance of $53,495 in the Purchases account, a balance of $2,875 in the Freight In account, and a balance of $5,220 in...
-
Calculate the total variance for overhead for the month. The standard cost card for a unit of product at the Cleaner Corp. shows the following standard cost information: Materials: 2 gallons at $11...
-
Allocation of indirect costs to various departments can alter the departmental profit. Stop Company manufactures plates for drum brakes. To make the brake plate, three departments are required:...
-
What does an increase in the balance of accounts receivable indicate?
-
How are the cash flows resulting from a company's investing activities identified?
-
What is the starting point for calculating the cash flow from operating activities?
Study smarter with the SolutionInn App