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BE 16-2 Temporary difference; determine taxable income: determine deferred tax amount L016-2 Kara Fashions uses straight-line depreciation for financial statement reporting and MACRS for income
BE 16-2 Temporary difference; determine taxable income: determine deferred tax amount L016-2 Kara Fashions uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. Three years after its purchase, one of Kara's buildings has a book value of $400.000 and a tax basis $300,000. There were no other temporary differences and no permanent differences. Taxable income was $4 million and Karn's tax rate is 25%. What is the deferred tax liability to be reported in the balance sheet? Assuming that the deferred tax liability balance was $20,000 the previous year, prepare the appropriate journal entry to record income taxes this year. BE 16-3 Temporary difference; determine taxable income; determine deferred tax amount for asset 100% deprecated in year of purchase 2 L016-2 Milo Manufacturing uses straight-line depreciation for financial statement reporting and is able to deduct 100% of the cost of equipment in the year the equipment is purchased for tax purposes. Four years after its purchase, one of Milo's manufacturing machines has a book value of S600,000. There were no other temporary differences and no permanent differences. Thxable income was $10 million and Milo's tax rate is 25%. What is the deferred tax liability to be reported in the balance sheet? Assuming that the deferred tax liability balance was $175,000 the previous year, prepare the appropriate Journal entry to record income taxes this year. BE 16-4 Temporary difference L016-1, L016-3 A company reports pretax accounting Income of $10 million, but because of a single temporary difference, taxable income is $12 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the appropriate Journal entry to record income taxes. BE 16-5 Temporary difference: Income tax payable given el 016-3 In 2021, Rynn Management collected rent revenue for 2022 tenant occupancy. For financini reporting, the rent is recorded as deforred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is tuxed when collected in 2021. The deferred portion of the rent collected in 2021 was $50 million. Taxable income is $180 million in 2021. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the appropriate journal entry to record income taxes in 2021. BE 16-2 Temporary difference; determine taxable income: determine deferred tax amount L016-2 Kara Fashions uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. Three years after its purchase, one of Kara's buildings has a book value of $400.000 and a tax basis $300,000. There were no other temporary differences and no permanent differences. Taxable income was $4 million and Karn's tax rate is 25%. What is the deferred tax liability to be reported in the balance sheet? Assuming that the deferred tax liability balance was $20,000 the previous year, prepare the appropriate journal entry to record income taxes this year. BE 16-3 Temporary difference; determine taxable income; determine deferred tax amount for asset 100% deprecated in year of purchase 2 L016-2 Milo Manufacturing uses straight-line depreciation for financial statement reporting and is able to deduct 100% of the cost of equipment in the year the equipment is purchased for tax purposes. Four years after its purchase, one of Milo's manufacturing machines has a book value of S600,000. There were no other temporary differences and no permanent differences. Thxable income was $10 million and Milo's tax rate is 25%. What is the deferred tax liability to be reported in the balance sheet? Assuming that the deferred tax liability balance was $175,000 the previous year, prepare the appropriate Journal entry to record income taxes this year. BE 16-4 Temporary difference L016-1, L016-3 A company reports pretax accounting Income of $10 million, but because of a single temporary difference, taxable income is $12 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the appropriate Journal entry to record income taxes. BE 16-5 Temporary difference: Income tax payable given el 016-3 In 2021, Rynn Management collected rent revenue for 2022 tenant occupancy. For financini reporting, the rent is recorded as deforred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is tuxed when collected in 2021. The deferred portion of the rent collected in 2021 was $50 million. Taxable income is $180 million in 2021. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the appropriate journal entry to record income taxes in 2021
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