Hello i have questions again this week. i have attached the file.

Brief Exercise 19-2 Martinez Corporation began operations in 2017 and reported pretax financial income of $208,000 for the year. Martinez's tax depreciation exceeded its book depreciation by $36,000. Martinez's tax rate for 2017 and years thereafter is 40%. In its December 31, 2017, balance sheet, what amount of deferred tax liability should be reported? $ Deferred tax liability to be reported Brief Exercise 19-6 At December 31, 2017, Indigo Inc. had a deferred tax asset of $32,600. At December 31, 2018, the deferred tax asset is $57,300. The corporation's 2018 current tax expense is $62,200. What amount should Indigo report as total 2018 income tax expense? $ Total income tax expense for 2018 Brief Exercise 19-11 At December 31, 2017, Pharoah Corporation had a deferred tax liability of $611,900, resulting from future taxable amounts of $2,110,000 and an enacted tax rate of 29%. In May 2018, a new income tax act is signed into law that raises the tax rate to 35% for 2018 and future years. Prepare the journal entry for Pharoah to adjust the deferred tax liability. (Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit Brief Exercise 19-14 Coronado Inc. incurred a net operating loss of $455,000 in 2017. Combined income for 2015 and 2016 was $337,000. The tax rate for all years is 30%. Coronado elects the carryback option. Assume that it is more likely than not that the entire net operating loss carryforward will not be realized in future years. Prepare all the journal entries necessary at the end of 2017. (Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit (To record carryback.) (To record carryforward.) (To record allowance.) Exercise 19-6 Listed below are items that are commonly accounted for differently for financial reporting purposes than they are for tax purposes. For each item below, indicate whether it involves: (1) A temporary difference that will result in future deductible amounts and, therefore, will usually give rise to a deferred income tax asset. (2) A temporary difference that will result in future taxable amounts and, therefore, will usually give rise to a deferred income tax liability. (3) A permanent difference. Use the appropriate number to indicate your answer for each. (a) The MACRS depreciation system is used for tax purposes, and the straight-line depreciation method is used for financial reporting purposes for some plant assets. (b) A landlord collects some rents in advance. Rents received are taxable in the period when they are received. (c) Expenses are incurred in obtaining tax-exempt income. (d) Costs of guarantees and warranties are estimated and accrued for financial reporting purposes. (e) Installment sales of investments are accounted for by the accrual method for financial reporting purposes and the installment method for tax purposes. (f) For some assets, straight-line depreciation is used for both financial reporting purposes and tax purposes, but the assets' lives are shorter for tax purposes. (g) Interest is received on an investment in tax-exempt municipal obligations. (h) Proceeds are received from a life insurance company because of the death of a key officer. (The company carries a policy on key officers.) (i) The tax return reports a deduction for 80% of the dividends received from U.S. corporations. The cost method is used in accounting for the related investments for financial reporting purposes. (j) Estimated losses on pending lawsuits and claims are accrued for books. These losses are tax deductible in the period(s) when the related liabilities are settled. (k) Expenses on stock options are accrued for financial reporting purposes. Exercise 19-17 Carla Co. establishes a $142,000,000 liability at the end of 2017 for the estimated site-cleanup costs at two of its manufacturing facilities. All related closing costs will be paid and deducted on the tax return in 2018. Also, at the end of 2017, the company has $71,000,000 of temporary differences due to excess depreciation for tax purposes, $9,940,000 of which will reverse in 2018. The enacted tax rate for all years is 40%, and the company pays taxes of $90,880,000 on $227,200,000 of taxable income in 2017. Carla expects to have taxable income in 2018. Determine the deferred taxes to be reported at the end of 2017. $ Deferred tax assets Deferred tax liabilities $ Exercise 19-8 (Part Level Submission) Blue Company has the following two temporary differences between its income tax expense and income taxes payable. Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income 2017 2018 2019 $828,000 $887,000 $901,000 (30,500) (40,200) (10,100) 20,700 10,500 8,100 $818,200 $857,300 $899,000 The income tax rate for all years is 40%. (a) Assuming there were no temporary differences prior to 2017, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. (Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit 2017 Credit 2018 2019 Exercise 19-20 (Part Level Submission) The differences between the book basis and tax basis of the assets and liabilities of Headland Corporation at the end of 2016 are presented below. Book Basis Accounts receivable Litigation liability Tax Basis $46,000 $0 28,700 0 It is estimated that the litigation liability will be settled in 2017. The difference in accounts receivable will result in taxable amounts of $29,800 in 2017 and $16,200 in 2018. The company has taxable income of $341,000 in 2016 and is expected to have taxable income in each of the following 2 years. Its enacted tax rate is 34% for all years. This is the company's first year of operations. The operating cycle of the business is 2 years. (a) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2016. (Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit Exercise 19-24 (Part Level Submission) Flounder Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carryback provision is used where possible for a net operating loss.) Year Pretax Income (Loss) Tax Rate 2015 $116,000 40 % 2016 81,000 40 % 2017 (276,000 ) 45 % 2018 127,000 45 % The tax rates listed were all enacted by the beginning of 2015. (a) Prepare the journal entries for years 2015-2018 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized. (Credit account titles are automatically indented when 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.) Dat Account Titles and e Explanation 201 5 201 6 Debit Credit 201 7 (To record refund.) (To record allowance.) 201 8 (To record income taxes.) (To adjust allowance.) Brief Exercise 19-14 Coronado Inc. incurred a net operating loss of $455,000 in 2017. Combined income for 2015 and 2016 was $337,000. The tax rate for all years is 30%. Coronado elects the carryback option. Assume that it is more likely than not that the entire net operating loss carryforward will not be realized in future years. Prepare all the journal entries necessary at the end of 2017. (Credit account titles are automatically indented when 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.) Account Titles and Explanation income tax ref Debit Credit 101100 benefits due to 101100 (To record carryback.) deffered tax a 35400 benefits due to 35400 (To record carryforward.) benefits due to Allow ance to (To record allowance.) 35400 35400 Man-1t TIIZIB and Explanaon v '1 Income Tax Refund Race able 101100 J '1 Debit -- \"mews; Whack _ m.- fl'o record canyback.) v v Deferred Tax Asset x I Berle Due In Lass Carryhack I [To record canyforward.) X l Berle Due to Lass Carryhack v Allowance ho Reduce Deferred Tax Asset ho Expected Re (To record allowance.) Exercise 19-6 Listed below are items that are commonly accounted for differently for financial reporting purposes than they are for tax purposes. For each item below, indicate whether it involves: (1) A temporary difference that will result in future deductible amounts and, therefore, will usually give rise to a deferred income tax asset. (2) A temporary difference that will result in future taxable amounts and, therefore, will usually give rise to a deferred income tax liability. (3) A permanent difference. Use the appropriate number to indicate your answer for each. (a) 2 (b) 1 (c) The MACRS depreciation system is used for tax purposes, and the straight-line depreciation method is used for financial reporting purposes for some plant assets. A landlord collects some rents in advance. Rents received are taxable in the period when they are received. Expenses are incurred in obtaining tax-exempt income. 3 (d) 1 (e) 2 (f) 2 (g) Costs of guarantees and warranties are estimated and accrued for financial reporting purposes. Installment sales of investments are accounted for by the accrual method for financial reporting purposes and the installment method for tax purposes. For some assets, straight-line depreciation is used for both financial reporting purposes and tax purposes, but the assets' lives are shorter for tax purposes. Interest is received on an investment in tax-exempt municipal obligations. 3 (h) 3 (i) 3 (j) Proceeds are received from a life insurance company because of the death of a key officer. (The company carries a policy on key officers.) The tax return reports a deduction for 80% of the dividends received from U.S. corporations. The cost method is used in accounting for the related investments for financial reporting purposes. Estimated losses on pending lawsuits and claims are accrued for books. These losses are tax deductible in the period(s) when the related liabilities are settled. 1 (k) Expenses on stock options are accrued for financial reporting purposes. 1 Exercise 19-20 (Part Level Submission) The differences between the book basis and tax basis of the assets and liabilities of Headland Corporation at the end of 2016 are presented below. Book Basis Accounts receivable Litigation liability Tax Basis $46,000 $0 28,700 0 It is estimated that the litigation liability will be settled in 2017. The difference in accounts receivable will result in taxable amounts of $29,800 in 2017 and $16,200 in 2018. The company has taxable income of $341,000 in 2016 and is expected to have taxable income in each of the following 2 years. Its enacted tax rate is 34% for all years. This is the company's first year of operations. The operating cycle of the business is 2 years. (a) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2016. (Credit account titles are automatically indented when 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.) Account Titles and Explanation income tax ex deferred tax a income tax pa deferred tax li Debit Credit 121822 9758 115940 15640 Exercise 19-8 (Part Level Submission) Blue Company has the following two temporary differences between its income tax expense and income taxes payable. Pretax financial income 2017 2018 2019 $828,000 $887,000 $901,000 Excess depreciation expense on tax return (30,500) (40,200) 20,700 10,500 8,100 $818,200 $857,300 $899,000 Excess warranty expense in financial income Taxable income (10,100) The income tax rate for all years is 40%. (a) Assuming there were no temporary differences prior to 2017, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. (Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit Credit 2017 income tax ex deferred tax a income tax pa 331200 8280 327280 deferred tax li 12200 12200 2018 income tax ex 354800 deferred tax a 4200 income tax pa 342920 deferred tax li 4200 2019 income tax ex deferred tax a income tax pa deferred tax li 360400 3240 359600 4040 \fExercise 19-24 (Part Level Submission) Flounder Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carryback provision is used where possible for a net operating loss.) Pretax Income (Loss) Year Tax Rate 2015 $116,000 40 % 2016 81,000 40 % 2017 (276,000 ) 45 % 2018 127,000 45 % The tax rates listed were all enacted by the beginning of 2015. (a) Prepare the journal entries for years 2015-2018 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized. (Credit account titles are automatically indented when 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.) Dat Account Titles and e Explanation 2015 income tax ex Debit 46400 income tax pa 2016 income tax ex Credit 46400 32400 income tax pa 2017 income tax ref deferred tax a 32400 78800 61650 benefit due to 78800 benefit due to 61650 (To record refund.) Benefit Due to 61650 Allow ance to 61650 (To record allowance.) 2018 income tax ex income tax pa deferred tax a (To record income taxes.) 57150 21600 35550 Benefit Due to Allow ance to (To adjust allowance.) 26100 26100 201? 2018 Income Tax Refund Receivable Deterred Tax Asset Benet Due to Loss Canyhack Benet Due be Loss Carl-yfomard |' |' | | fro record refund.) v Benet Due to Loss Carryforward Allowance to Reduce Deferred Tax Asset ho Expected Real (To record allowance.) \\I Income Tax Expense v Income Tax Payable U HIE Deferred Tax Asset (To record income taxes.) I Benet Due to Loss Carl-y'fonuard 21500 201? 2018 Income Tax Refund Receivable Deterred Tax Asset Benet Due to Loss Canyhack Benet Due be Loss Carl-yfomard |' |' | | fro record refund.) v Benet Due to Loss Carryforward Allowance to Reduce Deferred Tax Asset ho Expected Real (To record allowance.) \\I Income Tax Expense v Income Tax Payable U HIE Deferred Tax Asset (To record income taxes.) I Benet Due to Loss Carl-y'fonuard 21500 Brief Exercise 19-2 Martinez Corporation began operations in 2017 and reported pretax financial income of $208,000 for the year. Martinez's tax depreciation exceeded its book depreciation by $36,000. Martinez's tax rate for 2017 and years thereafter is 40%. In its December 31, 2017, balance sheet, what amount of deferred tax liability should be reported? $ Deferred tax liability to be reported 14400 Brief Exercise 19-6 At December 31, 2017, Indigo Inc. had a deferred tax asset of $32,600. At December 31, 2018, the deferred tax asset is $57,300. The corporation's 2018 current tax expense is $62,200. What amount should Indigo report as total 2018 income tax expense? $ Total income tax expense for 2018 37500 Brief Exercise 19-11 At December 31, 2017, Pharoah Corporation had a deferred tax liability of $611,900, resulting from future taxable amounts of $2,110,000 and an enacted tax rate of 29%. In May 2018, a new income tax act is signed into law that raises the tax rate to 35% for 2018 and future years. Prepare the journal entry for Pharoah to adjust the deferred tax liability. (Credit account titles are automatically indented when 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.) Account Titles and Explanation income tax ex deferred tax li Debit Credit 126600 126600 Brief Exercise 19-14 Coronado Inc. incurred a net operating loss of $455,000 in 2017. Combined income for 2015 and 2016 was $337,000. The tax rate for all years is 30%. Coronado elects the carryback option. Assume that it is more likely than not that the entire net operating loss carryforward will not be realized in future years. Prepare all the journal entries necessary at the end of 2017. (Credit account titles are automatically indented when 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.) Account Titles and Explanation income tax ref Debit Credit 101100 benefits due to 101100 (To record carryback.) deffered tax asset 35400 benefits due to 35400 (To record carryforward.) benefits due to 35400 Allow ance to 35400 (To record allowance.) Exercise 19-6 Listed below are items that are commonly accounted for differently for financial reporting purposes than they are for tax purposes. For each item below, indicate whether it involves: (1) A temporary difference that will result in future deductible amounts and, therefore, will usually give rise to a deferred income tax asset. (2) A temporary difference that will result in future taxable amounts and, therefore, will usually give rise to a deferred income tax liability. (3) A permanent difference. Use the appropriate number to indicate your answer for each. (a) 2 (b) 1 (c) The MACRS depreciation system is used for tax purposes, and the straight-line depreciation method is used for financial reporting purposes for some plant assets. A landlord collects some rents in advance. Rents received are taxable in the period when they are received. Expenses are incurred in obtaining tax-exempt income. 3 (d) 1 (e) 2 (f) 2 (g) Costs of guarantees and warranties are estimated and accrued for financial reporting purposes. Installment sales of investments are accounted for by the accrual method for financial reporting purposes and the installment method for tax purposes. For some assets, straight-line depreciation is used for both financial reporting purposes and tax purposes, but the assets' lives are shorter for tax purposes. Interest is received on an investment in tax-exempt municipal obligations. 3 (h) 3 (i) 3 (j) 1 (k) Proceeds are received from a life insurance company because of the death of a key officer. (The company carries a policy on key officers.) The tax return reports a deduction for 80% of the dividends received from U.S. corporations. The cost method is used in accounting for the related investments for financial reporting purposes. Estimated losses on pending lawsuits and claims are accrued for books. These losses are tax deductible in the period(s) when the related liabilities are settled. Expenses on stock options are accrued for financial reporting purposes. 1 Exercise 19-17 Carla Co. establishes a $142,000,000 liability at the end of 2017 for the estimated site-cleanup costs at two of its manufacturing facilities. All related closing costs will be paid and deducted on the tax return in 2018. Also, at the end of 2017, the company has $71,000,000 of temporary differences due to excess depreciation for tax purposes, $9,940,000 of which will reverse in 2018. The enacted tax rate for all years is 40%, and the company pays taxes of $90,880,000 on $227,200,000 of taxable income in 2017. Carla expects to have taxable income in 2018. Determine the deferred taxes to be reported at the end of 2017. $ Deferred tax assets 56800000 Deferred tax liabilities $ 28400000 Exercise 19-8 (Part Level Submission) Blue Company has the following two temporary differences between its income tax expense and income taxes payable. Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income 2017 2018 2019 $828,000 $887,000 $901,000 (30,500) (40,200) (10,100) 20,700 10,500 8,100 $818,200 $857,300 $899,000 The income tax rate for all years is 40%. (a) Assuming there were no temporary differences prior to 2017, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. (Credit account titles are automatically indented when 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.) Account Titles and Explanation Debit 2017 income tax ex deferred tax a 331200 8280 Credit income tax pa 327280 deferred tax li 12200 2018 income tax ex 354800 deferred tax a 4200 income tax pa 342920 deferred tax li 4200 2019 income tax ex deferred tax a income tax pa deferred tax li 360400 3240 359600 4040 Exercise 19-20 (Part Level Submission) The differences between the book basis and tax basis of the assets and liabilities of Headland Corporation at the end of 2016 are presented below. Book Basis Accounts receivable Litigation liability Tax Basis $46,000 $0 28,700 0 It is estimated that the litigation liability will be settled in 2017. The difference in accounts receivable will result in taxable amounts of $29,800 in 2017 and $16,200 in 2018. The company has taxable income of $341,000 in 2016 and is expected to have taxable income in each of the following 2 years. Its enacted tax rate is 34% for all years. This is the company's first year of operations. The operating cycle of the business is 2 years. (a) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2016. (Credit account titles are automatically indented when 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.) Account Titles and Explanation income tax ex deferred tax a income tax pa deferred tax li Debit Credit 121822 9758 115940 15640 Exercise 19-24 (Part Level Submission) Flounder Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carryback provision is used where possible for a net operating loss.) Pretax Income (Loss) Year Tax Rate 2015 $116,000 40 % 2016 81,000 40 % 2017 (276,000 ) 45 % 2018 127,000 45 % The tax rates listed were all enacted by the beginning of 2015. (a) Prepare the journal entries for years 2015-2018 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized. (Credit account titles are automatically indented when 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.) Dat Account Titles and e Explanation 2015 income tax ex Debit 46400 income tax pa income tax expense 2016 Credit 46400 32400 income tax payable income tax refund receivable 2017 deferred tax asset 32400 78800 61650 benefit due to 78800 benefit due to loss carryforw ard 61650 (To record refund.) Benefit Due to Loss Carryforw ard 61650 Deferred Tax Asset to Expected Realizable Value 61650 (To record allowance.) income tax expense 2018 income tax payable deferred tax asset (To record income taxes.) 57150 21600 35550 Benefit Due to Loss Carryforw ard Deferred Tax Asset to Expected Realizable Value (To adjust allowance.) 26100 26100 Exercise 19-17 Carla Co. establishes a $142,000,000 liability at the end of 2017 for the estimated site-cleanup costs at two of its manufacturing facilities. All related closing costs will be paid and deducted on the tax return in 2018. Also, at the end of 2017, the company has $71,000,000 of temporary differences due to excess depreciation for tax purposes, $9,940,000 of which will reverse in 2018. The enacted tax rate for all years is 40%, and the company pays taxes of $90,880,000 on $227,200,000 of taxable income in 2017. Carla expects to have taxable income in 2018. Determine the deferred taxes to be reported at the end of 2017. $ Deferred tax assets 56800000 $ Deferred tax liabilities 28400000 THIS IS THE NEW SECTIONS OF 19-17 Indicate how the deferred taxes computed above are to be reported on the balance sheet. Carla Co. Balance Sheet $ Assuming that the only deferred tax account at the beginning of 2017 was a deferred tax liability of $14,200,000, draft the income tax expense portion of the income statement for 2017, beginning with the line \"Income before income taxes.\" (Hint: You must first compute (1) the amount of temporary difference underlying the beginning $14,200,000 deferred tax liability, then (2) the amount of temporary differences originating or reversing during the year, and then (3) the amount of pretax financial income.) Carla Co. Income Statement (Partial) $ $ $ THIS IS THE NEW SECTION OF 19-8 AFTER THIS IS ANSWERED THERE IS ONE MORE SECTION THAT WILL APPEAR. Indicate how deferred taxes will be reported on the 2019 balance sheet. Blue's product warranty is for 12 months. Blue Company Balance Sheet $ THIS IS THE NEW SECTION OF 19-20 THIS IS THE LAST ONE FOR THIS PART Indicate how deferred income taxes will be reported on the balance sheet at the end of 2016. Headland Corporation Balance Sheet $ Then I have more sections to 19-24 once those errors I sent earlier are corrected