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hi there for this question for the first part of the solution how did they determine the accounting basis numbers for the capital assets and
hi there for this question for the first part of the solution how did they determine the accounting basis numbers for the capital assets and warranty please. The circled numbers. * * A17-8 Calculate A17-8 Calculate a Loss Carryback and Its Benef Temporary Differences: Started operations in 20x5 and purchased buildings and equipment with an original cost of San est of SA00500 Benata Ltd. started operations in 20X3 Benata reported the following information: 20x5 20x8 $(460,000) Accounting earnings before tax Golf club dues $150,000 15,000 20x7 $310,000 20,000 45,000 70,000 15,000 45,000 45,000 20X6 $230,000 15,000 45,000 92,500 41,000 32,000 37% Depreciation expense CCA claimed Warranty expense 57,000 55,000 25,000 22,000 29,000 gooo 2050 Warranty costs incurred 55,000 40% 23,000 Tax rate-enacted in each year 35% 40% Required: 1. Prepare the journal entries for income taxes for each of the four years. Assume that the company is concerned that it might have another significant loss in 20X9. der to record the benefit al is realization during the ce benefit of the tax loss Cityforward in 2005, the company must be able to establish during the carryforward period is probable. This is defined as a probability of te Assignment 17-8 Requirement/ $ 158,000 Taxable income, 20x5 ($150,000 $15,000+$45,000-$55,000+$25,000-522,000). Taxable income, 20x6 ($230,000+$15,000+$45,000-$92,500+541,000-$32,000) Taxable income, 20x7 (5310,000+$20,000+545,000-$70,000+$57,000-$55,000).. Taxable loss, 20x8 ((5460,000)+$15,000+545,000+529,000-$23,000).. $206,500 $307,000 ...... $(394,000) Capital assets 400-55 400-99500 Tax Accounting DIT Liability Baris Temporary Difference | Opening Balance Adjustment 20x5 20x6 20x7 20x8 $345,000 252,500 182,500 182,500 310,000 265,000 220,000 $(10,000) (57,500) (82,500) (37,500) $(3,500) (21,275) (33,000) (15,000) $ 0 (3,500) (21,275) (33,000) $(3,500) (17,775) (11,725) 18,000 Warranty DIT Accounting Temporary Difference Basis Liability Opening Balance Adjustment 20x5 $ 1,050 20x6 3,390 $(3,000) (12,000) (14,000) (20,000) 20x7 20x8 $3,000 12,000 14,000 20,000 $1,050 4,440 5,600 8,000 $ 0 1,050 4,440 5,600 1,160 2,400
hi there for this question for the first part of the solution how did they determine the accounting basis numbers for the capital assets and warranty please. The circled numbers.
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