Question
Nana, Inc. had pretax net income of $220,000 and the following differences between taxable income and pretax net income for the year ended December 31,
Nana, Inc. had pretax net income of $220,000 and the following differences between taxable income and pretax net income for the year ended December 31, Year 9.
$40,000 of rent received in advance (taxable when received)
$10,000 of additional MACRS depreciation
$5,000 of non-tax-deductible fines and penalities
On 12/31/Y8, nana reported a deferred tax liability for depreciation differences with a normal balance of $20,000. Some depreciable assets were tired early in Year 9. There have not yet been any journal entries made in Year 9 affecting the DTL-Depreciation account. The total unresolved temporary difference future taxable amount for depreciation at 12/31/Y9 is $85,000. The only enacted income tax rate is 20%.
1) Nana, at the end of Year 9, when moving from pretax net income (PTNI) to taxable income (TI), the excess tax depreciation amount is:
2)Nana, at the end of Year 9, when moving from pretax net income (PTNI) to taxable income (TI), the amount of non-tax-deductible fines and penalties is:
3)Nana's taxable income (TI) at 12/31/Y9 is:
4)The required ending balance in Nana's DTL-Depreciation account at 12/31/Y9 is:
5)Which side is the balance on in nana's DTL-Depreciation account at 12/31/Y9?
6)The amount of the needed 12/31/Y9 year-end adjustment to Nana's DTL-Depreciation account is:
7)The 12/31/Y9 year-end adjustment needed in nana's DTL-Depreciation account is a:
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