Matt, Incorporated, had pretax accounting income of $329,000 and taxable income of $372,000 in 2024. The only difference between accounting and taxable income is estimated product warranty costs of $43,000 for sales in 2024. Warranty payments are expected to be in equal amounts over the next three years (2025 to 2027) and will be tax deductible at that time. Recent tax legislation will change the tax rate from the current 25% to 20% in 2026.

Determine the amounts necessary to record J-Matt's income taxes for 2024 and prepare the appropriate journal entry.

a-Determine the amounts necessary to record J-Matt's income taxes for 2024.

b-Prepare the appropriate journal entry. Note: Do not round intermediate calculations.Round your final answers to the nearest whole dollar.If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

2-Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $780,000 and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax accounting income the first year the equipment was used was $880,000, which includes interest revenue of $25,000 from municipal governmental bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 25%.

Prepare the journal entry to record income taxes.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

a-Journal entry worksheet

• Record the income tax expense.

3-In 2024, Ryan Management collected rent revenue for 2025 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2024. The deferred portion of the rent collected in 2024 was $58 million. Taxable income is $220 million in 2024. No temporary differences existed at the beginning of the year, and the tax rate is 25%.

Prepare the appropriate journal entry to record income taxes in 2024.

Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millionsrounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).

Journal entry worksheet

• Record the income tax expense for 2024.

4-Kara Fashions uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. Three years after its purchase, one of Kara's buildings has a book value of $800,000 and a tax basis of $600,000. There were no other temporary differences and no permanent differences. Taxable income was $5 million and Kara's tax rate is 25%.

What is the deferred tax liability to be reported in the balance sheet? Assuming that the deferred tax liability balance was $30,000 the previous year, prepare the appropriate journal entry to record income taxes this year.

Complete this question by entering your answers in the tabs below.

• Balance Sheet
• General Journal

What is the deferred tax liability to be reported in the balance sheet? Note: Enter your answer in whole dollars.