I need help with questions 5-8

aecounts d for hook Recognize the revenuc and COGS in the year of sale if the revenue td fo x Use the gross profit method: recognize gross profit commensurate with mount of installment receivable collected during the year g. Bad debt/loan losses. Method for book Estimated bad debt and recognized bad debt expense. Method for tax: Bad debt/loan losses are deductible upon write-off Required 1 Determine the 2. Determine the amount of taxable income for 2016 pretax financial income (hook income) for 2016 Book income Revenues/gains Expenses losses Taxable income 40,000 Category 1-Revenues and gains Revenues/gains $540,000 (446,750) , Category I-Expenses and losses . Expenses losses-T (446750) Category 11 - Gross profit on LTCC Re vau N . pr (7435),Category 11-Depreciation on PP&E- ^ ( 3.S Category II-Fines for violation Ti/So' ategory 11-Tax-exempt interest Muni bond ina 1,500) Category Il Tax ?mun, bon-inted Munl band inkep Book income Taxable income 12-0 3. Derive the amount of taxable income starting from book income Pretax financial income (Book income Difference due to accounting for assurance warranty 13125 Taxable income 5. Determine income tax payable assuming an income tax rate of 35% for all years. Income tax payable- Ga ldentily bai-ta dicsttuse current year's taable ncometobe ower b thmale tavable icame in later ears hie 6b. Determine the amount of deferred tax liability and show the change in DTL (as tOTL or L01L) Deferred Tax Liability (DTL) 7a. Identify baok-tax differences that cause current year's taxable income to be higher but that make future taxable income lower 78. Determine the amount of deferred tax asset and show the change in DTA (as ?OTA ur lOTA) Deferred Tax Asset (DTA) Determine the amount of income tax expense. Income tax payable +DTL-t DTA Income tax expense aecounts d for hook Recognize the revenuc and COGS in the year of sale if the revenue td fo x Use the gross profit method: recognize gross profit commensurate with mount of installment receivable collected during the year g. Bad debt/loan losses. Method for book Estimated bad debt and recognized bad debt expense. Method for tax: Bad debt/loan losses are deductible upon write-off Required 1 Determine the 2. Determine the amount of taxable income for 2016 pretax financial income (hook income) for 2016 Book income Revenues/gains Expenses losses Taxable income 40,000 Category 1-Revenues and gains Revenues/gains $540,000 (446,750) , Category I-Expenses and losses . Expenses losses-T (446750) Category 11 - Gross profit on LTCC Re vau N . pr (7435),Category 11-Depreciation on PP&E- ^ ( 3.S Category II-Fines for violation Ti/So' ategory 11-Tax-exempt interest Muni bond ina 1,500) Category Il Tax ?mun, bon-inted Munl band inkep Book income Taxable income 12-0 3. Derive the amount of taxable income starting from book income Pretax financial income (Book income Difference due to accounting for assurance warranty 13125 Taxable income 5. Determine income tax payable assuming an income tax rate of 35% for all years. Income tax payable- Ga ldentily bai-ta dicsttuse current year's taable ncometobe ower b thmale tavable icame in later ears hie 6b. Determine the amount of deferred tax liability and show the change in DTL (as tOTL or L01L) Deferred Tax Liability (DTL) 7a. Identify baok-tax differences that cause current year's taxable income to be higher but that make future taxable income lower 78. Determine the amount of deferred tax asset and show the change in DTA (as ?OTA ur lOTA) Deferred Tax Asset (DTA) Determine the amount of income tax expense. Income tax payable +DTL-t DTA Income tax expense