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Required information Skip to question [ The following information applies to the questions displayed below. ] Arndt, Incorporated reported the following for 2 0 2
Required information Skip to question The following information applies to the questions displayed below. Arndt, Incorporated reported the following for and $ in millions: Revenues $ $ Expenses Pretax accounting income income statement $ $ Taxable income tax return $ $ Tax rate: Expenses each year include $ million from a twoyear casualty insurance policy purchased in for $ million. The cost is tax deductible in Expenses include $ million insurance premiums each year for life insurance on key executives. Arndt sells oneyear subscriptions to a weekly journal. Subscription sales collected and taxable in and were $ million and $ million, respectively. Subscriptions included in and financial reporting revenues were $ million $ million collected in but not recognized as revenue until and $ million, respectively. Hint: View this as two temporary differencesone reversing in ; one originating in expenses included a $ million unrealized loss from reducing investments classified as trading securities to fair value. The investments were sold and the loss realized in During accounting income included an estimated loss of $ million from having accrued a loss contingency. The loss was paid in at which time it is tax deductible. At January Arndt had a deferred tax asset of $ million and no deferred tax liability. Required: Which of the five differences described in items ae are temporary and which are permanent differences? Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for Compute the deferred tax amounts that should be reported on the balance sheet. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for Compute the deferred tax amounts that should be reported on the balance sheet. Suppose that during tax legislation was passed that will lower Arndts effective tax rate to beginning in Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for
Required information
Skip to question
The following information applies to the questions displayed below.
Arndt, Incorporated reported the following for and $ in millions:
Revenues $ $
Expenses
Pretax accounting income income statement $ $
Taxable income tax return $ $
Tax rate:
Expenses each year include $ million from a twoyear casualty insurance policy purchased in for $ million. The cost is tax deductible in
Expenses include $ million insurance premiums each year for life insurance on key executives.
Arndt sells oneyear subscriptions to a weekly journal. Subscription sales collected and taxable in and were $ million and $ million, respectively. Subscriptions included in and financial reporting revenues were $ million $ million collected in but not recognized as revenue until and $ million, respectively. Hint: View this as two temporary differencesone reversing in ; one originating in
expenses included a $ million unrealized loss from reducing investments classified as trading securities to fair value. The investments were sold and the loss realized in
During accounting income included an estimated loss of $ million from having accrued a loss contingency. The loss was paid in at which time it is tax deductible.
At January Arndt had a deferred tax asset of $ million and no deferred tax liability.
Required:
Which of the five differences described in items ae are temporary and which are permanent differences? Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for Compute the deferred tax amounts that should be reported on the balance sheet. Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for Compute the deferred tax amounts that should be reported on the balance sheet. Suppose that during tax legislation was passed that will lower Arndts effective tax rate to beginning in Prepare a schedule that reconciles the difference between pretax accounting income and taxable income. Using the schedule, prepare the necessary journal entry to record income taxes for
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