Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 26 4 pts Time Atten 42M Fox, Inc. reported pre-tax income of $600,000 in 2020, $800,000 in 2021, and $1,000,000 in 2022, and taxable

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Question 26 4 pts Time Atten 42M Fox, Inc. reported pre-tax income of $600,000 in 2020, $800,000 in 2021, and $1,000,000 in 2022, and taxable income of $200,000 in 2020, $800,000 in 2021, and $1,400,000 in 2022. The tax rate is 40% in 2020, but under a recent enacted tax law, rates will be 42% in 2021 and 45% in 2022. Assuming all differences were temporary, originated in 2020 and reverse in 2022, which of the following is included in Fox's tax entry at the end of the 1st year, 2020? 180,000 DTA O 160,000 DTL O 160,000 DTA O 180,000 DTL Question 27 4 pts Owl Co. signs a 10-month lease and pays $225,000 to Fox Co. on March 15, 2020: $75,000 for April rent, $75,000 for last month rent, and $75,000 for a security deposit. Owl makes the policy election allowed by current lease standard. What is Owl's correct entry on March 15th? Dr: Prepaid Rent 150,000 & Security Deposit Receivable 75,000; Ce:Cash 225,000 O Dr: Prepaid Rent 75,000 & Security Deposit Receivable 150,000; Cr: Cash 225,000 O Dr: Unearned Revenue 150.000 & Security Deposit Receivable 75,000; Cr: Cash 225,000 O Dr: Unearned Revenue 150,000 & Security Deposit Receivable 75,000: Cr: Cash 225.000 Question 29 4 pts If Fox Toy Co. uses the periodic system and sells customers toys on credit for $80,000 with a $35,000 cost (& book value), what are the financial statement effects of the entry for this sale? O AIL: NE SE:INI:I CFS: NE O AIL: NE SE:NE NI:1 CFS: NE O A:1:1 SE: NE NI: NE CES: NE O AL LINE SE: NI:CFS: 1 D Question 30 4 pts Fox Co. accrues their first income tax provision on 12/31/20 using a 35% total estimated tax rate with a $200,000 book income, including $60,000 book depreciation expense vs. $80,000 tax depreciation deduction and no other book- tax differences. Fox tax provision entry includes: Deferred Tax Asset 7,000 Deferred Tax Liability 20,000 O Deferred Tax Asset 20,000 Income Tax Payable 63,000 Income Tax Expense 63,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Auditing

Authors: Walter Gerry Kell, William C. Boynton, Richard E. Ziegler

5th Edition

0471542830, 9780471542834

More Books

Students also viewed these Accounting questions

Question

D How will your group react to this revelation?

Answered: 1 week ago