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Posted on Sep 12, 2024

(opposite) Liability (same) Asset 1 2 3 Accounting income 4 Permanent differences: 5 Penalty 87,000 6,000 6 7 8 Temporary differences 9 Depreciation 10 Installment

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(opposite) Liability (same) Asset 1 2 3 Accounting income 4 Permanent differences: 5 Penalty 87,000 6,000 6 7 8 Temporary differences 9 Depreciation 10 Installment Sale 11 Deferred Rent 12 Bad Debts Depreciation 2020 Straight-line (acot 30,000 MACRS (tax) 50,000 Current difference (20,000) 2021 30,000 25,000 5,000 2022 30,000 15,000 15,000 (20,000) (50,000) (20,000) (50,000) 10,000 (10,000) 2021 25,000 2022 25,000 Installment sale 2020 Tax 25,000 Accounting 75,000 Current difference (50,000) 33,000 (10,000) 25,000 25,000 (70,000) 25% 8,250 2022 25% (2,500) 2021 10,000 25% (17,500) Deferred rent Tax Accounting Current difference 10,000 10,000 (10,000) 33,000 2,500 13 14 Taxable income 15 Future taxable 16 Future deductible 17 Income tax rate 18 Income tax payable 19 Change in DTL 20 Change in DTA 21 22 Entry: 23 Income tax expense 24 DTL change 25 DTA change 26 Income tax payable 27 28 Balance Sheet 29 DTA, beginning balance 30 + or -change 31 DTA, ending balance 32 33 DTL, beginning balance 34 +or-change 35 DTL, ending balance 36 37 Net noncurrent DTA (DTL) 38 Bad Debts 2020 Accounting lestim 20,000 Tax (actual) 10,000 Current difference 10,000 2021 21,000 15,000 6,000 2022 22,000 25,000 (3,000) 17,500 8,250 25,750 35,500 C F K L M N O P Q E (opposite) Liability G (same) Asset A E 1 2 3 Accounting income 4 Permanent differences: 5 52,000 6 2022 30,000 Depreciation Straight-line (aco MACRS (tan) Current difference 2020 30,000 50,000 (20,000) 2021 30,000 25,000 5,000 15,000 15,000 5,000 25,000 10,000 6,000 Installment sal Tax 2021 25,000 2022 25,000 2020 25,000 75,000 (50,000) Accounting Current difference 98,000 25,000 25,000 2022 2021 10,000 Deferred rent Tax Accounting Current difference 10,000 (10,000) 10,000 7 8 Temporary differences 9 Depreciation 10 Installment Sale 11 Deferred Rent 12 Bad Debts 13 14 Taxable income 15 Future taxable 6 Future deductible 17 Income tax rate 18 Income tax payable 19 Change in DTL 20 Change in DTA 21 22 Entry: 23 Income tax expense 24 25 26 Income tax payable 27 28 Balance Sheet 29 DTA, beginning balance 30 +or-change 31 DTA, ending balance 32 83 DTL, beginning balance 34 + or -change 35 DTL, ending balance 36 37 Net noncurrent DTA (DTL) 38 39 Bad Debts Accounting lestin_ Tax(actual) Current difference 2020 20,000 10,000 10,000 2021 21,000 15,000 6,000 2022 22,000 25,000 (3,000) D F H 1 L N P Q R A E 1 2 3 Accounting income 4 Permanent differences: E (opposite) Liability G (same) Asset 49,000 5 6 Depreciation Straight-line (acc MACRS (tax) Current differenc 2020 30,000 50,000 (20,000) 2021 30,000 25,000 5,000 2022 30,000 15,000 15,000 7 15,000 25,000 (10,000) (3,000) 2021 25,000 2022 25,000 Installment sal Tax Accounting Current difference 2020 25,000 75,000 (50,000) 25,000 25,000 8 Temporary differences 9 Depreciation 10 Installment Sale 11 Deferred Rent 12 Bad Debts 13 14 Taxable income 15 Future taxable 16 Future deductible 17 Income tax rate 18 Income tax payable 19 Change in DTL 20 Change in DTA 2022 2021 10,000 Deferred rent Tax Accounting Current difference 10,000 (10,000) 10,000 - 21 22 Entry: 23 Income tax expense Bad Debts Accounting (estir Tax (actual) Current differenc 2020 20,000 10,000 10,000 2021 21,000 15,000 6,000 2022 22,000 25,000 (3.000) 24 25 26 Income tax payable 27 28 Balance Sheet 29 DTA, beginning balance 30 + or - change 31 DTA, ending balance 32 33 DTL, beginning balance 34 + or - change 35 DTL, ending balance 36 37 Net noncurrent DTA (DTL) (opposite) Liability (same) Asset 1 2 3 Accounting income 4 Permanent differences: 5 Penalty 87,000 6,000 6 7 8 Temporary differences 9 Depreciation 10 Installment Sale 11 Deferred Rent 12 Bad Debts Depreciation 2020 Straight-line (acot 30,000 MACRS (tax) 50,000 Current difference (20,000) 2021 30,000 25,000 5,000 2022 30,000 15,000 15,000 (20,000) (50,000) (20,000) (50,000) 10,000 (10,000) 2021 25,000 2022 25,000 Installment sale 2020 Tax 25,000 Accounting 75,000 Current difference (50,000) 33,000 (10,000) 25,000 25,000 (70,000) 25% 8,250 2022 25% (2,500) 2021 10,000 25% (17,500) Deferred rent Tax Accounting Current difference 10,000 10,000 (10,000) 33,000 2,500 13 14 Taxable income 15 Future taxable 16 Future deductible 17 Income tax rate 18 Income tax payable 19 Change in DTL 20 Change in DTA 21 22 Entry: 23 Income tax expense 24 DTL change 25 DTA change 26 Income tax payable 27 28 Balance Sheet 29 DTA, beginning balance 30 + or -change 31 DTA, ending balance 32 33 DTL, beginning balance 34 +or-change 35 DTL, ending balance 36 37 Net noncurrent DTA (DTL) 38 Bad Debts 2020 Accounting lestim 20,000 Tax (actual) 10,000 Current difference 10,000 2021 21,000 15,000 6,000 2022 22,000 25,000 (3,000) 17,500 8,250 25,750 35,500 C F K L M N O P Q E (opposite) Liability G (same) Asset A E 1 2 3 Accounting income 4 Permanent differences: 5 52,000 6 2022 30,000 Depreciation Straight-line (aco MACRS (tan) Current difference 2020 30,000 50,000 (20,000) 2021 30,000 25,000 5,000 15,000 15,000 5,000 25,000 10,000 6,000 Installment sal Tax 2021 25,000 2022 25,000 2020 25,000 75,000 (50,000) Accounting Current difference 98,000 25,000 25,000 2022 2021 10,000 Deferred rent Tax Accounting Current difference 10,000 (10,000) 10,000 7 8 Temporary differences 9 Depreciation 10 Installment Sale 11 Deferred Rent 12 Bad Debts 13 14 Taxable income 15 Future taxable 6 Future deductible 17 Income tax rate 18 Income tax payable 19 Change in DTL 20 Change in DTA 21 22 Entry: 23 Income tax expense 24 25 26 Income tax payable 27 28 Balance Sheet 29 DTA, beginning balance 30 +or-change 31 DTA, ending balance 32 83 DTL, beginning balance 34 + or -change 35 DTL, ending balance 36 37 Net noncurrent DTA (DTL) 38 39 Bad Debts Accounting lestin_ Tax(actual) Current difference 2020 20,000 10,000 10,000 2021 21,000 15,000 6,000 2022 22,000 25,000 (3,000) D F H 1 L N P Q R A E 1 2 3 Accounting income 4 Permanent differences: E (opposite) Liability G (same) Asset 49,000 5 6 Depreciation Straight-line (acc MACRS (tax) Current differenc 2020 30,000 50,000 (20,000) 2021 30,000 25,000 5,000 2022 30,000 15,000 15,000 7 15,000 25,000 (10,000) (3,000) 2021 25,000 2022 25,000 Installment sal Tax Accounting Current difference 2020 25,000 75,000 (50,000) 25,000 25,000 8 Temporary differences 9 Depreciation 10 Installment Sale 11 Deferred Rent 12 Bad Debts 13 14 Taxable income 15 Future taxable 16 Future deductible 17 Income tax rate 18 Income tax payable 19 Change in DTL 20 Change in DTA 2022 2021 10,000 Deferred rent Tax Accounting Current difference 10,000 (10,000) 10,000 - 21 22 Entry: 23 Income tax expense Bad Debts Accounting (estir Tax (actual) Current differenc 2020 20,000 10,000 10,000 2021 21,000 15,000 6,000 2022 22,000 25,000 (3.000) 24 25 26 Income tax payable 27 28 Balance Sheet 29 DTA, beginning balance 30 + or - change 31 DTA, ending balance 32 33 DTL, beginning balance 34 + or - change 35 DTL, ending balance 36 37 Net noncurrent DTA (DTL)