Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Deferred Tax Calculations (Appendix) Wyhowski Inc. reported income from operations, before taxes, for 2015-2017 as follows: 2015 $323,000 2016 370,000 2017 433,000 When calculating income,

image text in transcribed
image text in transcribed
Deferred Tax Calculations (Appendix) Wyhowski Inc. reported income from operations, before taxes, for 2015-2017 as follows: 2015 $323,000 2016 370,000 2017 433,000 When calculating income, Wyhowski deducted depreciation on plant equipment. The equipment was purchased January 1, 2015, at a cost of $134,000. The equipment is expected to last three years and have a(n) $11,000 salvage value. Wyhowski uses straight-line depreciation for book purposes. For tax purposes, depreciation on the equipment is $77,000 in 2015, $31,000 in 2016, and $15,000 in 2017. Wyhowski's tax rate is 35% Required: Enter all amounts as positive numbers. 1. How much did Wyhowski pay in income tax each year? If required, round all calculations to the nearest dollar Taxes Paid Year 2015 2016 2017 2. How much income tax expense did Wyhowski record each year? Year Income Tax Expense 2015 2016 2017 3. What is the balance in the Deferred Income Tax account at the end of 2015, 2016, and 2017? If your answer is zero, enter "0". If required, round all calculations to the nearest dollar. Year Balance Debit or Credit 2015 Credit When calculating income, Wyhowski deducted depreciation on plant equipment. The equipment was purchased January 1, 2015, at a cost of $134,000. The equipment is expected to last three years and have a(n) $11,000 salvage value. Wyhowski uses straight-line depreciation for book purposes. For tax purposes, depreciation on the equipment is $77,000 in 2015, $31,000 in 2016, and $15,000 in 2017. Wyhowski's tax rate is 35% Required: Enter all amounts as positive numbers. 1. How much did Wyhowski pay in income tax each year? If required, round all calculations to the nearest dollar. Taxes Paid Year 2015 2016 2017 2. How much income tax expense did wyhowski record each year? Year Income Tax Expense 2015 2016 2017 3. What is the balance in the Deferred Income Tax account at the end of 2015, 2016, and 2017? If your answer is zero, enter "O". If required, round all calculations to the nearest dollar. Balance Year 2015 Debit or Credit Credit 2016 Credit 2017 No balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing E Commerce Systems And IT Infrastructure

Authors: Pearson

1st Edition

0536903662, 978-0536903662

More Books

Students also viewed these Accounting questions