Question
Olohana, Inc. had pretax net income of $180,000 and the following differences between taxable income and pretax net income for the year ended December 31,
Olohana, Inc. had pretax net income of $180,000 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 penalties On 12/31/Y8, Olohana reported a deferred tax liability for depreciation differences with a normal balance of $20,000. Some depreciable assets were retired 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 $70,000. The only enacted income tax rate is 20%.
For Olohana, at the end of Year 9, when moving from pretax net income (PTNI) to taxable income (TI), the unearned rent amount is:
A. subtracted B. ignored C. added
For Olohana, at the end of Year 9, when moving from pretax net income (PTNI) to taxable income (TI), the excess tax depreciation amount is:
A. ignored B. added C. subtracted
For Olohana, 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:
A. subtracted B. added C. ignored
The amount of Olohana's taxable income (TI) at 12/31/Y9 is:
A. 205,000 B. 235,000 C. 215,000 D. 135,000
The required ending balance in Olohana's DTL-Depreciation account at 12/31/Y9 is:
A. 50,000 B. 34,000 C. 20,000 D. 14,000
Which side is the balance on in Olohana's DTL-Depreciation account at 12/31/Y9?
A. debit B. credit
The amount of the needed 12/31/Y9 year-end adjustment to Olohana's DTL-Depreciation account is:
A. 20,000 B. 14,000 C. 6,000 D. 30,000
The 12/31/Y9 year-end adjustment needed in Olohana's DTL-Depreciation account is a:
A. credit B. debit
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