{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-28T02:15:42-04:00", "answer_date": "2024-05-28 02:15:42", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1814004", "url": "\/study-help\/questions\/arnold-industries-has-pretax-accounting-income-of-72-million-for-1814004", "question_creation_date_js": "2024-05-28T02:15:42-04:00", "question_creation_date": "May 28, 2024 02:15 AM", "meta_title": "[Solved] Arnold Industries has pretax accounting i | SolutionInn", "meta_description": "Answer of - Arnold Industries has pretax accounting income of $72 million for the year ended December 31, 2021. The tax rate is 25 | SolutionInn", "meta_keywords": "arnold,industries,pretax,accounting,income,$72,million,year,ended,december,31,2021", "question_title_h1": " Arnold Industries has pretax accounting income of $72 million for the year ended December 31, 2021. The tax rate is 25%. The only difference", "question_title": " Arnold Industries has pretax accounting income of $72 million for the", "question_title_for_js_snippet": "Arnold Industries has pretax accounting income of $72 million for the year ended December 31, 2021 The tax rate is 25 The only difference between accounting income and taxable income relates to an operating lease in which Arnold is the lessee The inception of the lease was December 28, 2021 An $48 million advance rent payment at the inception of the lease is tax deductible in 2021 but, for financial reporting purposes, represents prepaid rent expense to be recognized equally over the four year lease term Required 1 Complete the following table given below and prepare the appropriate journal entry to record Arnold's income taxes for 2021 2 Prepare the appropriate journal entry to record Amold's income taxes for 2022 Pretax accounting income was $100 million for the year ended December 31, 2022 3 Assume a new tax law is enacted in 2022 that causes the tax rate to change from 25 to 15 beginning in 2023 Complete the following table given below and prepare the appropriate journal entry to record Arnold's income taxes for 2022", "question_description": "\"image", "transcribed_text": "Arnold Industries has pretax accounting income of $72 million for the year ended December 31, 2021. The tax rate is 25%. The only difference between accounting income and taxable income relates to an operating lease in which Arnold is the lessee. The inception of the lease was December 28, 2021 An $48 million advance rent payment at the inception of the lease is tax-deductible in 2021 but, for financial reporting purposes, represents prepaid rent expense to be recognized equally over the four-year lease term. Required: 1. Complete the following table given below and prepare the appropriate journal entry to record Arnold's income taxes for 2021 2. Prepare the appropriate journal entry to record Amold's income taxes for 2022. Pretax accounting income was $100 million for the year ended December 31, 2022. 3. Assume a new tax law is enacted in 2022 that causes the tax rate to change from 25% to 15% beginning in 2023. Complete the following table given below and prepare the appropriate journal entry to record Arnold's income taxes for 2022", "related_book": { "title": "Managerial Accounting", "isbn": "9780470546888, 9780470333341, 470546883, 470333340, 978-0470578797", "edition": "4th edition", "authors": "James Jiambalvo", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/259.jpg", "uri": "\/textbooks\/managerial-accounting-4th-edition-259", "see_more_uri": "" }, "free_related_book": { "isbn": "979-8651395774", "uri": "\/textbooks\/fintechs-and-the-new-credit-environment-in-brazil-1st-edition-979-8651395774-186036", "name": "Fintechs And The New Credit Environment In Brazil", "edition": "1st Edition" }, "question_posted": "2024-05-28 02:15:42", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/foreman-publishing-companys-income-for-the-most-recent-quarter-was", "description": "Foreman Publishing Companys income for the most recent quarter was $500,000, and the average net book value of assets during the quarter was $1.5 million. 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