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ACC 302 - Deferred Taxes- Activity 4 Complete this activity at home and turn it in next class period. Assume no additional temporary differences occur and that each year following 20x4 pretax accounting income is $12,000. Schedule the tax consequences and record them for 20x5 - 20x7 42. ACC 302 - Deferred Taxel- 32. Assume Al of $4.000 for 20x4. The income statement includes an accrual for an $8,000 loss from a Lawsuit expected to be settled in 20x6. Calculate the tax loss carryover for 20x3 Accounting Income 4,000 Temporary Difference - due to depreciation (from chart) 2,500 Temporary Difference - due to lawsuit trilised) 8000 doo Taxable income (loss) before special deductions asoo NOL Carryover to 20x4 (14250) NOL Carryover to 20x5 4750 34. The cumulative temporary difference for depreciation: 20x1 Temporary Difference (from Chart) 1,250 20x2 Temporary Difference (from Chart) 2,500 20,3 Tomporary Difference (from Chart) 2,500 20x4 Temporary Difference (from Chart) 2.500 Cumulative Temporary Difference 8780 $_8000 This difference will be associated with future TAXABLE AMOUNTS Pr DEDUCTIBLE AMOUNTS The 20x4 temporary difference for the law suit is This difference will be associated with future TAXABLE AMOUNTS or DEDUCTIBLE AMOUNTS 10 20x7 2 SOO 20x5 1250 x30 20x6 5000 X30 TI (loss) +30 35. Schedule the current and future tax consequences for 20x4. Description 20x2 20x3 20x4 Description (10,500) (12,500) a Soo Taxable amounts NOL 8.750 na na Tax Rate Carryback NOL Tax Carryover 1,750 14,250 De Deductible Amounts 4750 Consequences 373 ISO 7 So $_2625 OTL 36. The amount of deferred DTL is SHORT TERM or LONG TERM 37 It will be classified as 38. The balance in the deferred tax asset is NOL Carryover Temporary difference due to lawsuit Total deductible amounts Tax rate Deferred Tax Asset 4,750 8000 12 750 304 . 3825 39. The balance in the allowance account is zero 40. Make T accounts for the DTL, DTA, and DTA Allowance Accounts Deferred Tax Liability Deferred Tax Asset Valuation Allowance 2400 beg 7507 asot 22400 1875 4275 2625 3825 41. Make the journal entry to record taxes. Valuation Allowance 2400 Deferred Tax Asset Deferred Tax Liability Income Tax Benefit uso 7 SO 12.00 ACC 302 - Deferred Taxes- Activity 4 Complete this activity at home and turn it in next class period. Assume no additional temporary differences occur and that each year following 20x4 pretax accounting income is $12,000. Schedule the tax consequences and record them for 20x5 - 20x7 42. ACC 302 - Deferred Taxel- 32. Assume Al of $4.000 for 20x4. The income statement includes an accrual for an $8,000 loss from a Lawsuit expected to be settled in 20x6. Calculate the tax loss carryover for 20x3 Accounting Income 4,000 Temporary Difference - due to depreciation (from chart) 2,500 Temporary Difference - due to lawsuit trilised) 8000 doo Taxable income (loss) before special deductions asoo NOL Carryover to 20x4 (14250) NOL Carryover to 20x5 4750 34. The cumulative temporary difference for depreciation: 20x1 Temporary Difference (from Chart) 1,250 20x2 Temporary Difference (from Chart) 2,500 20,3 Tomporary Difference (from Chart) 2,500 20x4 Temporary Difference (from Chart) 2.500 Cumulative Temporary Difference 8780 $_8000 This difference will be associated with future TAXABLE AMOUNTS Pr DEDUCTIBLE AMOUNTS The 20x4 temporary difference for the law suit is This difference will be associated with future TAXABLE AMOUNTS or DEDUCTIBLE AMOUNTS 10 20x7 2 SOO 20x5 1250 x30 20x6 5000 X30 TI (loss) +30 35. Schedule the current and future tax consequences for 20x4. Description 20x2 20x3 20x4 Description (10,500) (12,500) a Soo Taxable amounts NOL 8.750 na na Tax Rate Carryback NOL Tax Carryover 1,750 14,250 De Deductible Amounts 4750 Consequences 373 ISO 7 So $_2625 OTL 36. The amount of deferred DTL is SHORT TERM or LONG TERM 37 It will be classified as 38. The balance in the deferred tax asset is NOL Carryover Temporary difference due to lawsuit Total deductible amounts Tax rate Deferred Tax Asset 4,750 8000 12 750 304 . 3825 39. The balance in the allowance account is zero 40. Make T accounts for the DTL, DTA, and DTA Allowance Accounts Deferred Tax Liability Deferred Tax Asset Valuation Allowance 2400 beg 7507 asot 22400 1875 4275 2625 3825 41. Make the journal entry to record taxes. Valuation Allowance 2400 Deferred Tax Asset Deferred Tax Liability Income Tax Benefit uso 7 SO 12.00
