Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

First page is correct. I need help on the second page please. 1. The following is available for the taxable and pretax GAAP financial income

First page is correct. I need help on the second page please. image text in transcribed

image text in transcribed

1. The following is available for the taxable and pretax GAAP financial income of Film Company for 2010: Interest on municipal securities included in net income in 2010 was $5,000. Depreciation recognized in the tax return exceeded that in the financial statement income statement by $100,000. This temporary difference will reverse evenly during 2011 and 2012. The company has accrued revenue of $10,000 in 2010 for financial reporting purposes, however the tax laws allow them to deferred showing this as a taxable revenue until 2011 when the cash will be collected Film's pretax GAAP financial net income for 2010 was $300,000 and the company's income tax rate was 35%. This rate is scheduled to change to 40% for 2011 and 2012. A. Prepare below a deferred income tax schedule for 2010. Show all timing differences in the appropriate year's column. 2010 2011 2012 s00 0 sova 100,06 2000 B. Prepare the general journal entry to accrue income taxes for 2010. Assume there was no prior balance in the company's deferred income tax account. Erpos a. 2. In 2011 the company had a downturn and they had a ($200,000) GAAP financial accounting loss for that year. The company had no new originating timing differences during 2011, but they did experience the two timing reversals that were projected when completing the 2010 deferred tax schedule (see question 1). Assume the company will have adequate operating income in 2012 to cover any excess carryforwards that cannot be absorbed on the deferred tax schedule. A. Prepare below a deferred income tax schedule for 2011. 2011 2012 bpo o 310,00 0 12400 6 B. Prepare the general journal entry to accrue income taxes for 2011

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

Financial Markets And Institutions

Authors: Anthony Saunders, Marcia Cornett

5th Edition

0078034663, 978-0078034664

More Books

Students also viewed these Finance questions

Question

Compare value orientations among cultures

Answered: 1 week ago

Question

Discuss the relationship between culture and the built environment

Answered: 1 week ago