eBook Videos B P Question 9 Not complete Marked out of 7.14 \\ Flag question Recording Tax Valuation Allowance Maui Resort Inc. determined that the balance in its deferred tax asset account on December 31 was $60,000. Management reviewed all available positive and negative evidence to estimate that 30% of the deferred tax asset was more likely than not to be realized. The valuation allowance for deferred tax assets has a December 31 unadjusted balance of $4,800 (credit). Record the entry to adjust the allowance on December 31. Date Account Name Pr. Cr. Dec. 31 0 0 CheckeBook Videos & Pr Question 10 Not complete Marked out of 7.14 Flag question Analyzing Deferred Valuation Allowance Coffee Corporation recognized the following amounts in a recent annual report. $ millions Current Fiscal Year-End Prior Fiscal Year-End Deferred tax asset $990.7 $996.0 Valuation allowance $35.2 $71.9 Net income attributable to Coffee $1,690.6 $1,654.4 . Calculate the deferred tax asset valuation allowance as a percentage of deferred tax assets for both fiscal years presented. Numerator / Denominator = Result Current fiscal year $ O = 96 Prior fiscal year o= b. Based on your results in part a, does it appear that the company considers deferred tax benefits to be realized at a higher or lower rate than the prior year?eBook Videos & Print Question 11 Incorrect Mark 0.00 out of 7.14 \\ Flag question Analyzing Permanent Differences Baltimore Inc. reported pretax GAAP income of $63,000 in 2020. In analyzing differences between GAAP income and taxable income, the company determined that it had properly deducted $7,000 in nondeductible fines and added $3,920 in tax-exempt municipal interest revenue to GAAP income. Given a statutory tax rate of 25%, determine the following. a. Taxable income $ 120 x b. Income tax payable $ 0 X C. Income tax expense $ 0 X d. Net income $ O X e. Compute the effective tax rate. Numerator Denominator = Result Effective tax rate $ OX / $ 0 x = 96eBook Videos & P Question 12 Not complete Marked out of 7.14 Flag question Reconciling between Effective and Statutory Tax Rates Baltimore Inc. reported pretax GAAP income of 81,000 during the year. In analyzing differences between GAAP income and taxable income, the company determined that it had properly deducted $10,000 in nondeductible fines and added $5,600 in tax-exempt municipal interest revenue to GAAP income. The statutory tax rate is 25%. Prepare a reconciliation between Baltimore Inc.'s statutory tax rate and its effective tax rate. . Note: Enter the percent rounded to one digit after the decimal; for example, enter 8.4 for 8.44%, or 8.5 for 8.45%. Percentage Statutory tax rate 0 % Tax-exempt income 0 % Non-deductible expense 0 9% Effective tax rate D 96 CheckeBook . Videos & Pr Question 13 Not complete Marked out of 7.14 \\ Flag question Recording Income Tax Expense Lake Company has pretax GAAP income of $160,000 during its first year of operations. Lake Company has depreciation expense during the year for GAAP purposes that is $96,000 less than the amount of depreciation expense for tax purposes. In addition, $8,000 of regulatory fines included in the determination of pretax GAAP income are not tax deductible. Lake Company's tax rate is 25%. Prepare Lake Company's income tax entry on December 31. . Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero). Date Account Name Cr Dec. 31 0 To record income tax journal entry. Check Previous Save Answers NexteBook O Videos & P Question 14 Not complete Marked out of 7.14 Flag question Calculating Deferred Tax Balance Evergreen Company's reconciliation between pretax GAAP income and taxable income follows for the year. Pretax GAAP income $160,000 Depreciation adjustment (32,000) Permanent difference 1,000 Taxable income $129,000 The company had one temporary difference due to the GAAP basis of equipment exceeding the tax basis of equipment. Record the income tax journal entry for the year, assuming a tax rate of 25%. Assume that the January 1 deferred tax liability balance was $4,000. . Note: Round amounts to the nearest whole dollar. Date Account Name Dr. cr Dec. 31 O To record income tax expense. Check