The JB Company began operations in 2005 and uses the same accounting practices for financial and tax purposes except for warranty costs and franchise fee revenue. Warranty costs are recognized on the accrual basis for financial accounting purposes and on the cash basis for tax purposes. Franchise fees are recognized when earned for financial accounting purposes and when cash is received for tax purposes.

the enacted tax rates as of the end of 2005 are 40 percent, 35 percent, 30 percent, and 30 percent for 2005, 2006, 2007, and 2008, respectively.

A. at the end of 2005, the accrued warranty liability is $17,000 and the unearned franchise revenue fees are $130,000. both of the accounts are considered current and reversal is expected within one year. pretax financial income for 2005 was $310,000 and taxable income for 2005 was $457,000.

Prepare the tax worksheet, calculate the tax expense, and prepare the journal entry required to record tax expense and adjust the appropriate deferred tax accounts for 2005.

B. JB Corporation had a taxable loss of $600,000 in 2006. at the end of 2006, JB Corporation had an accrued warranty liability of $13,000 and unearned franchise fees are $50,000. JB expects to have taxable income of $120,000 in 2007 and $150,000 in 2008. they have decided to file for as much of a loss carry back as they can receive.

Prepare the tax worksheet, calculate the tax expense, and prepare the journal entry required to record tax expense and adjust the appropriate deferred tax accounts for 2006.

C. in 2007, JB had a taxable income before the consideration of any NOL carry forwards of $130,000. at the end of 2007, the accrued warranty liability account has a balance of $6,000 and the unearned franchise fees are $20,000

Prepare the tax worksheet, calculate tax expense, and prepare the journal entry required to record tax expense and adjust the appropriate deferred tax accounts for 2007.

for wednesday TAX 3: JB Company The J.B. Company began operations in 2005 and uses the same accounting practices for financial and tax purposes except for warranty costs and franchise fee revenue. Warranty costs are recognized on the accrual basis for financial accounting purposes and on the cash basis for tax purposes. Franchise fees are recognized when earned for financial accounting purposes and when cash is received for tax purposes. The enacted tax rates as of the end of 2005 are 40 percent, 35 percent, 30 percent, and 30 percent for 2005, 2006, 2007, and 2008, respectively. A At the end of 2005, the accrued warranty liability is $17,000 and the unearned franchise fees are $130,000. Both of the accounts are considered current and reversal is expected within one year. Pretax financial income for 2005 was $310,000 and taxable income for 2005 was $457,000. Prepare the tax worksheet, calculate tax expense, and prepare the journal entry required to record tax expense and adjust the appropriate deferred tax accounts for 2005. B. J.B. Corporation had a taxable loss of $600,000 in 2006. At the end of 2006 J. B. Corporation had an accrued warranty liability of $13,000 and unearned franchise fees are $50,000. J.B. expects to have taxable income of $120,000 in 2007 and $150,000 in 2008. They have decided to file for as much of a loss carryback as they can receive. Prepare the tax worksheet, calculate tax expense, and prepare the journal entry required to record tax expense and adjust the appropriate deferred tax accounts for 2006. In 2007 J.B. has taxable income before the consideration of any NOL carry forwards of $130,000. At the end of 2007, the accrued warranty liability account has a balance of $6,000 and the unearned franchise fees are $20,000. Prepare the tax worksheet, calculate tax expense, and prepare the journal entry required to record tax expense and adjust the appropriate deferred tax accounts for 2007. for wednesday TAX 3: JB Company The J.B. Company began operations in 2005 and uses the same accounting practices for financial and tax purposes except for warranty costs and franchise fee revenue. Warranty costs are recognized on the accrual basis for financial accounting purposes and on the cash basis for tax purposes. Franchise fees are recognized when earned for financial accounting purposes and when cash is received for tax purposes. The enacted tax rates as of the end of 2005 are 40 percent, 35 percent, 30 percent, and 30 percent for 2005, 2006, 2007, and 2008, respectively. A At the end of 2005, the accrued warranty liability is $17,000 and the unearned franchise fees are $130,000. Both of the accounts are considered current and reversal is expected within one year. Pretax financial income for 2005 was $310,000 and taxable income for 2005 was $457,000. Prepare the tax worksheet, calculate tax expense, and prepare the journal entry required to record tax expense and adjust the appropriate deferred tax accounts for 2005. B. J.B. Corporation had a taxable loss of $600,000 in 2006. At the end of 2006 J. B. Corporation had an accrued warranty liability of $13,000 and unearned franchise fees are $50,000. J.B. expects to have taxable income of $120,000 in 2007 and $150,000 in 2008. They have decided to file for as much of a loss carryback as they can receive. Prepare the tax worksheet, calculate tax expense, and prepare the journal entry required to record tax expense and adjust the appropriate deferred tax accounts for 2006. In 2007 J.B. has taxable income before the consideration of any NOL carry forwards of $130,000. At the end of 2007, the accrued warranty liability account has a balance of $6,000 and the unearned franchise fees are $20,000. Prepare the tax worksheet, calculate tax expense, and prepare the journal entry required to record tax expense and adjust the appropriate deferred tax accounts for 2007