drop box for permanent difference is: Non-deductable fines or None or Non-taxable dividend income.
Drop box for temporary difference is Add back or Deduct or Nothing.
QUESTION DATA: For the year ended December 31, 2020, Brian Co. reported a $300,000 accounting income before income tax expense and discontinued operations. The company had a loss from a discontinued operation of $60,000 which is fully deductible The tax rate for 2010 and later is 25%. The company reported the following differences between accounting and taxable income in its current year: Reported on income statement Depreciation expense $ 50,000 Estimated warranty expense 40,000 Non-taxable dividend income 4,000 Non-deductible fines 6,000 Rent revenue (note 1) 20.000 Reported on tax return: Capital cost allowance $ 55,000 Actual warranty costs incurred 43,000 Rent revenue (note 1) Note 1: A tenant paid $60,000 on December 10, 2019 for a 3 year rental for the period January 1, 2020 to December 31, 2022. The rent income was taxed when received REQUIRED (1). Complete the following reconciliation from Accounting income to Taxable income. Select the permanent difference line using the drop-down box provided. For temporary differences, select adjustment direction from drop-down box and fill in the appropriate blue cells. Sub-totals of each adjustment will be calculated automatically, except for Taxable income. Accounting income Permanent differences: Temporary differences Depreciation expense Capital cost allowance Estimated warranty expense Actual warranty costs incurred Rent revenue - Accounting Rent revenue - Tax Taxable income (2). Prepare all appropriate journal entries to record the 2020 current income taxes for Brian Co. Follow the journal entry descriptions to help with the journal entry order. Account Title Debit Credit Date Dec. 31/20 Record income taxes on taxable income Dec. 31/20 Record income taxes on the discontinued loss. 3). What account and amount would Brian Co. rep ton its balance sheet at December 31, 2020 relating to its current taxes? Account Name Amount (5) QUESTION DATA: For the year ended December 31, 2020, Brian Co. reported a $300,000 accounting income before income tax expense and discontinued operations. The company had a loss from a discontinued operation of $60,000 which is fully deductible The tax rate for 2010 and later is 25%. The company reported the following differences between accounting and taxable income in its current year: Reported on income statement Depreciation expense $ 50,000 Estimated warranty expense 40,000 Non-taxable dividend income 4,000 Non-deductible fines 6,000 Rent revenue (note 1) 20.000 Reported on tax return: Capital cost allowance $ 55,000 Actual warranty costs incurred 43,000 Rent revenue (note 1) Note 1: A tenant paid $60,000 on December 10, 2019 for a 3 year rental for the period January 1, 2020 to December 31, 2022. The rent income was taxed when received REQUIRED (1). Complete the following reconciliation from Accounting income to Taxable income. Select the permanent difference line using the drop-down box provided. For temporary differences, select adjustment direction from drop-down box and fill in the appropriate blue cells. Sub-totals of each adjustment will be calculated automatically, except for Taxable income. Accounting income Permanent differences: Temporary differences Depreciation expense Capital cost allowance Estimated warranty expense Actual warranty costs incurred Rent revenue - Accounting Rent revenue - Tax Taxable income (2). Prepare all appropriate journal entries to record the 2020 current income taxes for Brian Co. Follow the journal entry descriptions to help with the journal entry order. Account Title Debit Credit Date Dec. 31/20 Record income taxes on taxable income Dec. 31/20 Record income taxes on the discontinued loss. 3). What account and amount would Brian Co. rep ton its balance sheet at December 31, 2020 relating to its current taxes? Account Name Amount
