e19-14 Intermediate Accounting version 16- kieso
Tax rates enacted as of the beginning of 2015 are: 2015 and 2016 2017 and 2018 2019 and later McEvil's taxable income for 2016 is $320000. Taxable income is expected in all future years Instructions al Prepare the journal entry for McEvil record incometaxespayable deferred income xes, and income tax e for (b) 2016, assuming that there were no deferred axes at the end of 2015. income taxes, and income tax expense for Prepare the journal ent McEvil income taxes deferred account at the end of 2015 2016, assuming that there was balance of S22000 Tax Liability E19-12 (L01,2) (Deferred Tax Asset with and without valuation Account Jennifer Capriati Corp. has a deferred tax account with a balance the end of 2016 due to a single difference of the end of this same temporary difference has increased to a cumulative amount of $450,000. tax rate is 40% for all years. No valuation account related to the deferred tax asset is in existence at the end o Instructions (a) Record income tax expense, deferred income taxes, and income taxes payable for 2017 assuming that it is more likely than not that the deferred tax asset will be realized b) Assuming that s more likely than not that s30,000 of the deferred tax asset will not be realized, prepare the journal entry at the end of 2017 to record the valuation account E19-13 (L01,2) (Deferred Tax Asset with Previous valuation Account Assume the same information as E19-12, except that at the end of 2016, Jennifer Capriati Corp. had a valuation account related to its deferred tax asset Instructions (a) Record income tax expense, deferred income taxes, and income taxes payable for 2017, assuming that it is more likely than not that the deferred tax asset will be realized in full. (b) Record income tax expense, deferred income and income taxes payable for 2017, assuming that it is more likely than not that none of the deferred tax will be realized E19-14 (Lo1,2,3,4) (Deferred Tax Liability, Change in Tax Rate, Prepare Section of Income statement Novotna Inc only temporary difference at the beginning and end of 2016 is caused by a $3 million deferred gain for tax purposes for an install ment sale of a plant asset, and the related receivable (only one-half of which is classified as a current asset) is due equal install- ments in 2017 and 2018. The related deferred tax liability at the beginning of the year is In the third quarter of 2016 new rate enacted into law and is scheduled to become effective for 2018. Taxable income for 2016 is s5,000,000 and taxable income is ex in future years pected nstructions (a) Determine the amount as a deferred tax liability at the end of 2016. Indicate proper classification b) Prepare the journal entry (if any necessary to adjust the deferred ax liability when the new tax rate is enacted into law. (c Draft the income tax expense portion of the income statement for 2016. Begin with the line ome before income taxes." Assume no permanent differences exist. (L01,2) (Two Temporary Differences, Tracked through 3 Years, Multiple Rates Taxable income and pretax finan cial income warranties. The following income computations have been prepared. Taxable Income 2018 Excess of revenues over expense excluding two temporary differences $160,000 $210,000 $90,000 Installment gross profit collected 8,000 Expenditures for warranties 5,000 Taxable income $163,000 $213,000 Pretax Financial Income Excess of revenues over expenses $210,000 uding two temporary differences $160,000 $90,000 Installment gross profit recognized 24000 Estimated cost of warranties. $210,000 $169,000 $90,000
