Question
can you please answer this as soon as possible You are the bookkeeper of Steve company and you started preparing the tax return for the
can you please answer this as soon as possible
You are the bookkeeper of Steve company and you started preparing the tax return for the company for the year of 2020, you have collected the following information about all the differences between the books and the tax return:
1. The company reported an installment sale at the beginning of 2019 total of 70,200 in which collection will start from 1.1.2019 (equally over 36 months starting 1.1.2019)
2. The company collected 13,000 rent in advance in 2020 which will be earned equally over 2021 and 2022
3. The company recorded estimated warranties cost in 2019 total of 30,000 (deductible when paid for tax purposes) . Of this amount 10,000 was paid in 2020 and the remaining was paid in 2022
4. The company donated 14,000 during the year of 2020
5. Excess book depreciation over tax depreciation total of 80,000 in 2019 which will be reversed equally over the following four years.
6. The tax rate for 2019 and 2020 were 40%, a new tax rate was enacted at the beginning of 2021 which is 30%.
7. The taxable income for the years of 2019,2020, 2021 and 2022 is: 400,000, 650,000, 460,000 and 300,000 respectively.
8. The company has no other differences.
Required:
1. Pretax income for 2019 |
2. Pretax income for 2020 |
3. Pretax income for 2021 |
4. Pretax income for 2022 |
5. Ending balance of DTA 2019 |
6. Ending balance of DTA 2020 |
7. Ending balance of DTA 2021 |
8. Ending balance of DTA 2022 |
9. Ending balance of DTL 2019 |
10. Ending balance of DTL 2020 |
11. Ending balance of DTL 2021 |
12. Ending balance of DTL 2022 |
13. Income tax payable 2020 |
14. Income tax payable 2021 |
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