Exercise 18-14
Pina ColadaCorporation purchased equipment very late in 2017. Based on generous capital cost allowance rates provided in the Income Tax Act,Pina ColadaCorporation claimed CCA on its 2017 tax return but did not record any depreciation as the equipment had not yet been put into use. This temporary difference will reverse and cause taxable amounts of $31,900 in 2018, $31,800 in 2019, and $41,400 in 2020.Pina Colada's accounting income for 2017 is $226,200 and $196,200 in each of 2018 and 2019, and the tax rate is 32%. There are no deferred tax accounts at the beginning of 2017.Pina ColadaCorporation was informed on December 31, 2018 that the enacted rate for 2019 and subsequent years is 29%.
Calculate the deferred tax balances at December 31, 2018 and 2019.
WileyPLUS X *Homework Help - Q&A from Onl x + X C A edugen.wileyplus.com/edugen/Iti/main.uni k G it: Apps @ YouTube Translate * [Solved] The outsta... Assignment > Open Assignment PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Assignment #5 Chapter Calculate the deferred tax balances at December 31, 2018 and 2019. 18 Exercise 18-6 2018 2019 Exercise 18-14 Deferred tax liability $ 10208 $ 9222 Brief Exercise 18-15 Brief Exercise 18-16 Review Score Review Results by Study Calculate taxable income and income tax payable for 2018 and 2019. Objective 2018 2019 Taxable income Income taxes payable $ Prepare the journal entries to record income taxes for 2018 and 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 2018 (To record current taxes.) License Agreement | Privacy Policy | @ 2000-2019 John Wiley & Sons. Inc. All Rights Reserved, A Division of John Wiley & Sons, Inc. Version 4.24.17.1 O Type here to search e A 3 1 7 ( ENG 9:08 PM 2019-11-19 56WileyPLUS X *Homework Help - Q&A from Onl x + X C A edugen.wileyplus.com/edugen/Iti/main.uni k G it: Apps @ YouTube Translate * [Solved] The outsta... Assignment > Open Assignment PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Assignment #5 Chapter Prepare the journal entries to record income taxes for 2018 and 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent 18 manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Exercise 18-6 Exercise 18-14 Date Account Titles and Explanation Debit Credit Brief Exercise 18-15 Brief Exercise 18-16 2018 Review Score Review Results by Study Objective (To record current taxes.) (To record deferred taxes.) 2019 (To record current taxes.) (To record deferred taxes.) Prepare the income tax expense section of the income statement for 2018. beginning with the line "Income before income tax." (Enter negative amounts using either a License Agreement | Privacy Policy | @ 2000-2019 John Wiley & Sons. Inc. All Rights Reserved, A Division of John Wiley & Sons, Inc. Version 4.24.17.1 O Type here to search e 6 9 V7 A 3 6 9 7 ( ENG 9:10 PM 2019-11-19 56WileyPLUS X *Homework Help - Q&A from Onl x + X C A edugen.wileyplus.com/edugen/Iti/main.uni k G it: Apps @ YouTube Translate * [Solved] The outsta... Assignment > Open Assignment Double Click To Hide Blank Area PRINTER VERSION BACK NEXT ASSIGNMENT RESOURCES Prepare the income tax expense section of the income statement for 2018, beginning with the line "Income before income tax." ( Enter negative amounts using either a Assignment #5 Chapter 18 negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Exercise 18-6 Pina Colada Corporation Exercise 18-14 (Partial) Income Statement Brief Exercise 18-15 Brief Exercise 18-16 Review Score Review Results by Study Objective $ Prepare the income tax expense section of the income statement for 2019, beginning with the line "Income before income tax." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Pina Colada Corporation [Partial) Income Statement License Agreement | Privacy Policy | @ 2000-2019 John Wiley & Sons. Inc. All Rights Reserved, A Division of John Wiley & Sons, Inc. Version 4.24.17.1 O Type here to search e 6 V7 A 3 0 1 7 ENG 9:18 PM 2019-11-19 56S WileyPLUS X *Homework Help - Q&A from Onl x + X edugen.wileyplus.com/edugen/Iti/main.uni k G Apps @ YouTube Translate *[Solved] The outsta... Assignment > Open Assignment PRINTER VERSION 1 BACK NEXT ASSIGNMENT RESOURCES Assignment #5 Chapter 18 Exercise 18-6 $ Exercise 18-14 Brief Exercise 18-15 Brief Exercise 18-16 Prepare the income tax expense section of the income statement for 2019, beginning with the line "Income before income tax." (Enter negative amounts using either a Review Score negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Review Results by Study Objective Pina Colada Corporation (Partial) Income Statement Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER License Agreement | Privacy Policy | @ 2000-2019 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. Version 4.24.17.1 O Type here to search e 6 V7 3 0 1 / ENG 9:18 PM 2019-11-19 56
