Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 19-9 At December 31, 2016, Marin Company had a net deferred tax liability of $377,600. An explanation of the items that compose this balance

image text in transcribed

Exercise 19-9 At December 31, 2016, Marin Company had a net deferred tax liability of $377,600. An explanation of the items that compose this balance is as follows. Resulting Balances in Deferred Taxes 1. $208,600 2. Temporary Differences Excess of tax depreciation over book depreciation Accrual, for book purposes, of estimated loss contingency from pending lawsuit that is expected to be settled in 2017. The loss will be deducted on the tax return when paid. Accrual method used for book purposes and installment method used for tax purposes for an isolated installment sale of an investment. (53,200 ) 3. 222,200 $377,600 In analyzing the temporary differences, you find that $29,300 of the depreciation temporary difference will reverse in 2017, and $125,600 of the temporary difference due to the installment sale will reverse in 2017. The tax rate for all years is 40%. Indicate the manner in which deferred taxes should be presented on Marin Company's December 31, 2016, balance sheet. Marin Company's Balance Sheet

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

Sound Investing, Chapter 11 - Crafty Comprehensive Income

Authors: Kate Mooney

1st Edition

0071719334, 9780071719339

More Books

Students also viewed these Accounting questions

Question

Summarize the findings of psychotherapy effectiveness studies.

Answered: 1 week ago

Question

What are the current HRM challenges in the textile industry?

Answered: 1 week ago