need help figuring out deferred tax and income tax footnote

.. . Tax Compliance and Provision Project - Parts I and II Joash-1 Q . Search Sheet Home Insert Draw Page Layout Formulas Data Review View '+ Share ~ Cut Calibri (Body) * 11 A- A Wrap Text General Percent 2 Normal Bad 1401 _ AutoSum Copy Fill AP . Q . Paste BI UT . . AT Merge & Center $ ~ % > Conditional Format Good Neutral Calculation Insert Delete Format Clear Sort & Find & Format Formatting as Table Filter Select G37 4 x V fx B C D E F G H I J K L M N P Q R S T U v w X Oh Gnome You Didn't, Inc. 2018 Taxable Income Calculation ***Accuracy Checkpoint Below*** Book Net Income/(Loss) 571,550 Non-Deductible Tax Expense 168,321 Permanent Book/Tax Differences Interest Income - Municipal Bond 6,000) Investment Expense - Municipal Bond 2,392 Entertainment Expense 3,750 Meals Expense 2,100 Total Permanent Differences 2,242 Temporary Book/Tax Differences Depreciation (375,589) Prepaid Property Taxes (8,000) Capital Loss 25,000 Charitable Contributions 0 Amortization (163,827) Organizational Costs 45,360) Allowance for Doubtful Accounts 13,427 Stock Compensation Expense 11,176 Total Temporary Differences (543,173) 2018 Taxable Income 198,940 Accuracy Checkpoint - Correct Answer 161,836 Variance (should be within +/- 1.0) 37,104 Income Tax Footnote Current Provision Deferred Provision State Adjustments Book-to-tax Rec Perm Book-Tax Differences Temp Book-Tax Differences Financial Statements Trial Balance Sheet3 + Ready + 100%Tax Compliance and Provision Project - Parts I and II Joash-1 Q Search Sheet Home Insert Draw Page Layout Formulas Data Review View '+ Share ~ & Cut Calibri (Body) * 11 A- A = = Wrap Text General Percent 2 Normal Bad 1401 _ AutoSum Copy Fill Paste + Merge & Center $ % " 00 $.0 Conditional Format Good Neutral Calculation Insert Delete Format Sort & Formatting as Table Clear Find & Format Filter Select F40 4 X V fx B C D E G H J K L M N P Q R S Oh Gnome You Didn't, Inc. Select from the provided list of options 2 2018 Current Provision Manual input is required ***Accuracy Checkpoint Below*** 2018 Federal Income Tax Return 2018 State Income Tax Return Federal Benefit of Current State Tax Liability (8,618) Book Net Income/(Loss) 571,550 Federal Taxable Income 198,940 Add-Back Income Taxes 68,321 Pre-Tax Book Income/(Loss) 739,871 State Adjustments Interest Income - Municipal Bond 6,000 Permanent Differences Investment Expense - Municipal Bond 2,392 Interest income - Municipal Bond (6,000) State Income Tax Expense 4,182 Investment Expense - Municipal Bond 2,392 Depreciation (893,303) Entertainment Expense 3,750 Total State Adjustments (855,513) Meals Expense 2,100 Total Permanent Differences 2,242 State Taxable Income (656,573) Statutory Income Tax Rate 6.25% Temporary Differences 2018 State Income Tax Liability (41,036) Depreciation (375,589) Prepaid Taxes (8,000) Capital Loss 25,000 Charitable Contributions ederal Current Tax Expense 41,777 Amortization (163,827) State Current Tax Expense 41,036) Organizational Costs (45,360) Net Current Tax Expense 741 Allowance for Doubtful Accounts 13,427 Stock Compensation 11,176 Accuracy Checkpoint - Correct Answer 68,168 Total Temporary Differences (543,173) Variance (should be within +/- 1.0) (67,427) Federal Taxable Income 198,940 Statutory Income Tax Rate 21% 2018 Federal Income Tax Liability 41,777 Income Tax Footnote Current Provision Deferred Provision State Adjustments Book-to-tax Rec Perm Book-Tax Differences Temp Book-Tax Differences Financial Statements Trial Balance Sheet3 + Ready " - + 100%Tax Compliance and Provision Project - Parts I and II Joash-1 Q . Search Sheet Home Insert Draw Page Layout Formulas Data Review View '+ Share Cut Calibri (Body) * 12 . A- A = : = Wrap Text Number Percent 2 Normal Bad 141 AutoSum AP . Q . Copy Fill Paste Conditional Format Good Neutral Calculation Insert Delete Format Sort & Find & Format Merge & Center $ % 2 08 0 Formatting as Table Clear Filter Select F28 * X V fx C D E G H I J K L M N 0 P Q R S T 1 Oh Gnome You Didn't, Inc. Select from the provided list of options 2018 Deferred Provision Manual input is required ***Accuracy Checkpoint Below*** Federal Income Tax 1/1/2018 Gross 2018 Book/Tax 12/31/2018 Gross Deferred Tax Provision Summary Book/Tax Difference Deferred Activity Deferred Asset/Liability Federal Deferred Tax Expense (32,284) Allowance for Doubtful Accounts 13,427 13,427 Deferred Tax Asset State Deferred Tax Expense (18,130) Amortization (163,827) (163,827) Deferred Tax Liability Net Deferred Tax Expense (50,414) Capital Loss 25,000 25,000 Deferred Tax Asset Entertainment Expense 3,750 3,750 Deferred Tax Liability Accuracy Checkpoint - Correct Answer 134,335 Meals Expense 2,100 2,100 Deferred Tax Liability Variance (should be within +/- 1.0) (184,749) Organizational Costs (45,360) 45,360) Deferred Tax Asset Charitable Contributions 0 0 Deferred Tax Asset Stock Compensation 11,176 11,176 Deferred Tax Liability Gross DTA/(DTL) (153,734) (153,734) Statutory Income Tax Rate 219 21% Net Deferred Tax Asset/(Liability) 0 32,284) Deferred Tax Liability State Income Tax 1/1/2018 Gross 2018 Book/Tax 12/31/2018 Gross Book/Tax Difference Deferred Activity Deferred Asset/Liability Interest income - Municipal Bond 6,000 6,000 Deferred Tax Asset Depreciation (375,589) (375,589) Deferred Tax Asset Investment Expense - Municipal Bond 2,392 2,392 Deferred Tax Liability Prepaid Taxes 0 Total Gross DTA/(DTL) (367,197) 367,197) Statutory Income Tax Rate, net of Federal benefit 4.94% 4.94% Net Deferred Tax Asset/(Liability) 0 (18,130) Income Tax Footnote Current Provision Deferred Provision State Adjustments Book-to-tax Rec Perm Book-Tax Differences Temp Book-Tax Differences Financial Statements Trial Balance Sheet3 + Ready - + 100%Tax Compliance and Provision Project - Parts I and II Joash-1 Q . Search Sheet Home Insert Draw Page Layout Formulas Data Review View "+ Share & Cut Calibri (Body) * 11 A- A = = E Wrap Text General Percent 2 Normal Bad 141 AutoSum L Copy Fill AP . Q. Paste $ % 2 00 .0 Calculation Insert Delete Format Sort & Format BI UT .& A.= = =313 Merge & Center Conditional Format Good Neutral Formatting as Table Clear Filter Find & Select 133 B C D E F G H K L M N 0 P Q R Oh Gnome You Didn't, Inc. Select from the provided list of options 2018 Effective Tax Rate & Footnote Information Manual input is required *Accuracy Checkpoints Below*** Effective Tax Rate Reconciliation Tax Effects of Temporary Differences Tax Attribute Carryforwards Pre-tax book income/(loss) 739,871 Deferred Tax Assets Tax Effect Carryforward Type Carryforward Amount Year of Expiration vestment Expense - Municipal Bond Capital loss carryforward Computed at the statutory rate (21%) 155,373 21.00% Amortization Net operating loss Tax-exempt income and related expenses (758) -0.10% Prepaid Taxes Entertainment expense 78 0.11% Meals expense 44 0.06% State taxes, net of Federal benefit (50,548) -6.83% Total Deferred Tax Assets 0 2018 Income Tax Provision/ Effective Tax Rate 105,296 14.23% Deferred Tax Liabilities Tax Effect Capital Loss ETR Reconciliation - Proof Amortization Current Federal Provision 41,777 Total Deferred Tax Liabilities Deferred Federal Provision (32,284) Total Federal Provision 9,493 Net Deferred Tax Liability Current State Provision (41,036) Deferred State Provision (18,130) Temporary Difference Tax Effect - Proof Total State Provision (59,166) Total Deferred Provision (50,414) Net Deferred Tax Liability Total Current Provision 741 Variance (should be within +/- 1.0) (50,414) Total Deferred Provision (50,414) Total Provision (49,673) Per ETR Reconciliation 105,296 Variance (should be within +/- 1.0) (154,969) Income Tax Footnote Current Provision Deferred Provision State Adjustments Book-to-tax Rec Perm Book-Tax Differences Temp Book-Tax Differences Financial Statements Trial Balance Sheet3 + Ready + 100%Tax Compliance and Provision Project - Parts I and II Joash-1 Q . Search Sheet Home Insert Draw Page Layout Formulas Data Review View '+ Share ~ & Cut Calibri (Body) * 11 A- A = = Wrap Text General Percent 2 Normal Bad 191 AutoSum 4 Copy Fill AP . Q. Paste $ % " Neutral Calculation Sort & Format Merge & Center 00 .0 Conditional Format Good Insert Delete Format Clear Find & Formatting as Table Filter Select B23 4 X V fx C D E F G H J K L M N P Q R S T Oh Gnome You Didn't, Inc. Permanent Book/Tax Differences - Supporting Calculations Select from the provided list of options Manual input is required Disallowed % Type of Book/Tax Type of Perm Adjustment Reason for Perm Adjustment Acct. Number Account Name Amount for Tax Schedule M Difference Interest Income - Municipal Bond Income included for books, not for tax 420 Interest Income - Municipal Bond (6,000) 100% (6,000 Favorable Investment Expense - Municipal Bond Expense deductible for books, not for tax 565 Investment Expense - Municipal Bond 2,392 100% 2,392 Unfavorable Entertainment Expense Expense deductible for books, not for tax 540 Entertainment Expens 7,500 50% 3,750 Unfavorable Meals Expense Expense deductible for books, not for tax 545 Meals Expense 4,200 50% 2,100 Unfavorable Non-deductible Tax Expense Acct. Number Account Name Amount Federal Current Tax Expense 585 Federal Current Tax Expense 33,986 Federal Deferred Tax Expense 586 Federal Deferred Tax Expense 122,646 State Deferred Tax Expense 591 State Deferred Tax Expense 11,689 Disallowed Income Tax Expense 168,321 Income Tax Footnote Current Provision Deferred Provision State Adjustments Book-to-tax Rec Perm Book-Tax Differences Temp Book-Tax Differences Financial Statements Trial Balance Sheet3 + Ready Q ! - + 100%Tax Compliance and Provision Project - Parts I and II Joash-1 Q . Search Sheet Home Insert Draw Page Layout Formulas Data Review View "+ Share ~ & Cut Wrap Text General Percent 2 Normal Bad 14#1 AutoSum 4 Copy Calibri (Body) * 11 . A- A = Fill AP . Q . aste Format BI UT. . A. BE Merge & Center $ % 2 60 .0 Conditional Format Good Neutral Calculation Insert Delete Format Sort & Find & Formatting as Table Clear Filter Select + X V fx C D E F G H J K L M N 0 P Q Oh Gnome You Didn't, Inc. Select from the provided list of options State Income Tax - Modifications to Federal Taxable Income Manual input is required Depreciation Useful Life Bonus Depr. Bonus Regular 2018 State Tax Acct. Number Account Name Asset Cost (in months) Allowance % Depreciation Depreciation Depreciation 130 Furniture & Fixtures 45,000 84 50% 22,500 3,214 25,714 140 Equipment - Gnome 130,00 60 50% 65,000 13,000 000'84 150 Equipment - Duck 000'069 50% 345,000 69,000 414,000 865,00 432,500 85,214 517,714 Tax Depreciation - State Return 517,714 Tax Depreciation - Federal Return (375,589) State Adjustment (893,303) Add-back State Tax Federal Tax State Impact of State Modification Tax-Exempt Municipal Bonds Acct. Number Account Name Inclusion Inclusion Adjustment on Federal Taxable Income Interest Income - Municipal Bond 420 Interest Income - Municipal Bond (6,000) 6,000 Add-back Investment Expense - Municipal Bond 565 Investment Expense - Municipal Bond 2,392 (2,392) Add-back State Tax Expense Expense Impact of State Modification Acct. Number Account Name Amount on Federal Taxable Income 590 State Current Tax Expense 14,182 Deduction Allowed by State 0 State Adjustment 34,182 Deduction Income Tax Footnote Current Provision Deferred Provision State Adjustments Book-to-tax Rec Perm Book-Tax Differences Temp Book-Tax Differences Financial Statements Trial Balance Sheet3 + Ready + 100%Tax Compliance and Provision Project - Parts I and II Joash-1 Q Search Sheet Home Insert Draw Page Layout Formulas Data Review View '+ Share ~ X Cut Calibri (Body) * 11 . A- A = Wrap Text Number Percent 2 Normal Bad - X . AutoSum Fill AP . Q . Copy ste BI UT . . A.= = =38 Merge & Center Conditional Format Good Neutral Calculation Insert Delete Format Find & Format Clear Sort & Formatting as Table Filter Select 4 X V fx G H K L M N P Expense Type or Book/ Tax Acct. Number Account Name Amount Difference 580 Capital Loss on Sale of Investment 25,00 Allowable Tax Deduction 0 Charitable Contributions Schedule M 25,000 Unfavorable Expense Type of Book/Tax Acct. Number Account Name Amount Difference 535 Charitable Contributions 20,500 Allowable Tax Deduction 20,500 Stock Compensation Expense Schedule M Favorable Expense Type of Book/Tax Acct. Number Account Name Amount Difference Tentative Taxable Income 198,940 *includes deduction for total charitable contributions 525 Stock Compensation Expense - NSOs 11,176 Add: Charitable Contributions 20,500 Allowable Tax Deduction 0 Modified Taxable Income 219,440 Schedule M 11,176 Unfavorable Tax Deduction Limitation % 10% Tax Deduction Limitation 21,944 Depreciation Useful Life Bonus Depr. Bonus Regular 2018 Tax Acct. Number Account Name Asset Cost Allowance % Depreciation Depreciation Depreciation Furniture & Fixtures 45,000 (in months) 130 84 50% 22,500 3,214 25,714 140 Equipment - Gnome 130,000 60 50% 65,000 13,000 78,000 150 Equipment - Duck 690,000 50% :45,000 59,00 000'598 132,500 85,214 517,714 Tax Depreciation 517,714 Acct. Number (Book Depreciation Expense) 570 Depreciation Expense 142,125 Type of Book/Tax Difference Schedule M (375,589) Favorable Amortization Recovery Period 2018 Tax Acct. Number Account Name Asset Cost in months) # of Months Amortization 160 Goodwill 57,000 180 12 43,800 165 Intangibles - Non-goodwill 378,000 180 12 25,200 1,035,000 69,000 Tax Amortization 000'69 Acct. Number (Book Amortization Expense) 170 Accumulated Amortization (94,827) Type of Book/Tax Difference Schedule M (163,827) Favorable Income Tax Footnote Current Provision Deferred Provision State Adjustments Book-to-tax Rec Perm Book-Tax Differences Temp Book-Tax Differences Financial Statements Trial Balance Sheet3 +Tax Compliance and Provision Project - Parts I and II Joash-1 Q . Search Sheet Home Insert Draw Page Layout Formulas Data Review View "+ Share ~ do Cut Copy Calibri (Body) * 11 . A- A- = = = Wrap Text Number Percent 2 Normal Bad 1401 2 AutoSum Fill AP. Paste B I U . . & A. B= =3 Merge & Center $ % 2 08 0 Conditional Format Good Neutral Calculation Insert Delete Format Clear Sort & Find & Format Formatting as Table Filter Select 51 4 X V fx D E F G H K M N Oh Gnome You Didn't, Inc. Temporary Book/Tax Differences - Supporting Calculations Select from the provided list of options Manual input is required Allowance for Doubtful Accounts Organizational Costs Type of Book/Tax Expense Type of Book/Tax Acct. Number Account Name Beg. Balance End. Balance Schedule M Difference Acct. Number Account Name Amount Difference 110 Allowance for Doubtful Accounts (13,427) 13,427 Unfavorable 555 Organizational Expense 1,800 Allowable Tax Deduction 6,440 Schedule M 45,360 Favorable Prepaid Property Taxes Maximum Immediate Expense 5,000 Type of Book/Tax Immediate Expense Phaseout (008'T) Acct. Number Account Name Beg. Balance End. Balance Schedule M Difference Allowable Immediate Expense 3,200 120 Prepaid Property Taxes 8,000 (8,000) Favorable Amortizable Expense 48,600 Recovery Period (months) 180 # of Months in 2018 12 Capital Loss 2018 Org Cost Amortization 3,240 Expense Type of Book/Tax Acct. Number Account Name moun Difference 580 Capital Loss on Sale of Investment 25,00 Allowable Tax Deduction 0 Charitable Contributions Schedule M 25,000 Unfavorable Expense Type of Book/Tax Acct. Number Account Name Amount Difference 535 Charitable Contributions 20,500 Allowable Tax Deduction 20,500 Stock Compensation Expense Schedule M Favorable Expense Type of Book/Tax Acct. Number Account Name Amount Difference Tentative Taxable Income 198,940 *includes deduction for total charitable contributions 525 Stock Compensation Expense - NSOs 11,176 Add: Charitable Contributions 20,500 Allowable Tax Deduction 0 Modified Taxable Income 219,440 Schedule M 11,176 Unfavorable Tax Deduction Limitation % 10% Tax Deduction Limitation 21,944 Depreciation Useful Life Bonus Depr. Bonus Regular 2018 Tax Acct. Number Account Name Asset Cost (in months) Allowance % Depreciation Depreciation Depreciation 130 Furniture & Fixtures 45,000 84 50% 22,500 3,214 25,714 140 Equipment - Gnome 130,000 60 50% 65,000 13,000 78,000 150 Equipment - Duck 000'069 509% 69,000 865,000 432,500 85,214 517,714 Tax Depreciation 517,714 Acct. Number (Book Depreciation Expense) 570 Depreciation Expense 142,125 Type of Book/Tax Difference Schedule M (375,589) Favorable Income Tax Footnote Current Provision Deferred Provision State Adjustments Book-to-tax Rec Perm Book-Tax Differences Temp Book-Tax Differences Financial Statements Trial Balance Sheet3 + Ready - + 100%