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the answers in the yellow might be wrong A B The following information is available for Remmers Corporation for 2017 1. Depreciation reported on the
the answers in the yellow might be wrong
A B The following information is available for Remmers Corporation for 2017 1. Depreciation reported on the tax return exceeded depreciation reported on the $ 160,000 $12,000 $ 75,000 $ 50,000 income statement by Interest received on municipal bonds Rent collected in advance on January 1, 2017 for a 3-year period Portion of rent reported as unearned at 12/31/2017 for book purposes 2. 3. 4. Income tax rate for 2017 5. 40% Income tax rate for 2018 and subsequent years Income taxes due per the tax return for 2017 No deferred taxes existed at the beginning of 2017 35% $ 360,000 6. Choose from the following account names and headings for journal entries and Part (e) Current tax expense Deferred tax asset Deferred tax benefit Deferred tax expense Deferred tax liability Income before income tax Income tax benefit Income tax expense Income tax payable Net Income Pretax financial income Taxable Income Instructions: Do not show "cents" in your amounts (a) Compute taxable income for 2017 $ 900,000 Taxable income for 2017- (b) Compute pretax financial income for 2017 $900,000 $160,000 Taxable income from Part (a)- Adjust back for temporary taxable differencels Adjust back for temporary deductible difference/s Adjust back for permanent difference/s: $12,000 Pretax financial i income for 2017- (c) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, The following entry should be made using the numbers from Part (b) Debit S 360,000 Credit 2017 Income tax ex Deferred tax asset Deferred tax liabili 30,000 $56,000 $ 360,000 Income tax payable (d) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2018, based on the original information and the following additional information. You should not refer to anv other cells $1,000,000 $40,000 $25,000 Taxable income for 2018 Reversal of excess depreciation in 2018 Unearned rent remaining at the end of 2018: 2018 Income tax ex 360,000 14,000 Deferred tax liabili Deferred tax asset 8,750 350,000 Income tax payable (e) Prepare the income tax expense section of the income statement for 2017, beginning with "Income before income taxes." Net IncomeStep by Step Solution
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