Allied Corp $-$ Unadjusted Trial Balance as of $12/31/23$

Item Debit Credit

Cash $424000$

Prepaid Expense $64000$

Accounts Receivable $15000$

DTA $22400$

Machine $192000$

Accum Dep $-$ Machine $000$

Income Tax Payable $001016$

DTL $00144$

Unearned Revenue $00320$

Note Payable $001280$

Common Stock $001040$

Additional Paid In$-$Capital $001120$

Sales Revenue $0016380$

Cost of Goods Sold $800000$

Sales and General Expense $272000$

Depreciation Expense $000$

Officer's Life Insurance Prem $40000$

Interest on Municipal Bonds $00320$

Fine paid to the EPA $104000$

Income Tax Expense $-202393600$

$21,62021,620$

Assumptions:

$1.$Allied determined on $12/31/2023$ that a lawsuit settlement was probable.$$ Payment of $$400$ was received early in $2024,$ as expected.

$2.$ Allied paid for lawn care in advance in November $2023$: $$640$ for the $2024$ and $2025$ seasons. $($$$400$ for $2024,$ $$240$ for $2025)$

$3.$ The machine was purchased on $7/15/23.$ This is the only fixed asset.$$ Depreciation is straight$-$line over four years.$$

$4.$ Assume that Current Tax Law allows half of the value of the assets to be depreciated in the first year, with the balance to be depreciated straight line

Assignments:

$1.$ What is the pre$-$tax income for the year $2023?$

$2.$ What is the taxable book income for the year $2023?$

$3.$ What is the taxable income for the year $2023?$

$4.$ What is the $2023$ tax payable?

$5.$ What are the tax accounting journal entries for $2023?($journal entries needed to be made to correct the above balances$)$

$6.$ Classify the DTA $/$ DTLs created as Current $/$ Non Current for the $12/31/23$ Balance Sheet

$7.$ Create a $2023$ Income statement

$8.$ What is the $2023$ closing journal entry?

$9.$ Create a $12/31/23$ balance sheet

$10.$ The accountant left you a lovenote indicating that the DTA on the books is for a $640$ NOL carryforward.

Does his calculation seem accurate? Why or why not?