Valley Assignment #11

Attached Files:

• N_Income Taxes_13e.xlsx(21.675 KB)

Please complete the income tax work papers (N section) then make sure that all of the work papersare saved in one Excel file with proper cross referencing of the work papers.Please make sure to complete each of the items listed below:

Item Pts Calculate income tax payable5.0Calculate current & deferred income taxes10.0Tax Memo2.0Senior Memo & Conlusion10.0Final Trial Balance (including cross referencing)55.0Final Analytic review15.0Management letter comments8.0Balance Sheet15.0Statement of income & retained earnings15.0Cash flow statement15.0Total points earned150.0

VALLEY PUBLISHING COMPANY Income Taxes Payable 12/31f20x2 (Prepared by client) Deferred income taxes Current income taxes Income tax M Descrigtion Asset Liability payable expense Balance, 12l31l20x1 13,400 (16,500) 2-04 Payment of 20x1 taxes 16,500 JE Accrued for 20x2 (24,000) 24,000 Payment, 20x2 taxes (4-1 7, 6-12, 9-12) 24,000 13,400 0 0 24,000 N-2 VALLEY PUBLISHING COMPANY Income Tax Calculation 12/31/20x2 Calculation of taxable income and current income tax provision Book income before income taxes Permanent difference - 50% limitation on meals emporary differences: - Bad debt expense Legal fees for Fairfield acquisition Additional depreciation for income tax purposes Subtotal Charitable contribution limit resulting in contribution carrry-forward of Tax rate Total current income taxes payable for the year 20x2 Paid during 20x2 and recorded as expense Additional current income tax provision required Calculation of deferred income tax provision Taxable Deferred tax asset (liability) Def tax Tax @ 36% (benefit) (deductible) expense Temporary differences W/P ref Book basis basis temp diff. 12/31/20x2 12/31/20x1 20x2 Allowance for doubtful accounts Legal fees for Fairfield acquisition Property, plant & equipment 5,532, 195 5,422,195 110,000 (39,600) 0 39,600 Charitable contribution carry-forward Deferred income tax provision required TOTAL ADDITIONAL INCOME TAY PROVISION REQUIRED