Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Creditaccount titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" forthe account titles and enter O for the amounts.)Account Titles and ExplanationDebitCredit Carla Corporation reports pretax financial income of $262,600 for 2020. The following items cause taxable income to be differentthan pretax financial income.1.Rental income on the income statement is less than rent collected on the tax return by $62,300.2.Depreciation on the tax return is greater than depreciation on the income statement by $43,200.Interest on an investment in a municipal bond of $5,900 on the income statement.3.Carla' tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxesat the beginning of 2020.(a)Your answer has been saved. See score details after the due date.Compute taxable income and income taxes payable for 2020.Taxable income%24275,800Income taxes payable2482,740

Answered: Carla Corporation reports pretax…

Carla Corporation reports pretax financial income of $262,600 for 2020. The following items cause taxable income to be different than pretax financial income.

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ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

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Problem 20CE

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Carla Corporation reports pretax financial income of $262,600 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Rental income on the income statement is less than rent collected on the tax return by $62,300. 2. Depreciation on the tax return is greater than depreciation on the income statement by $43,200. 3. Interest on an investment in a municipal bond of $5,900 on the income statement. Carla' tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. (a) Compute taxable income and income taxes payable for 2020. Taxable income $ Income taxes payable 2$
Carla Corporation reports pretax financial income of $262,600 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Rental income on the income statement is less than rent collected on the tax return by $62,300. 2. Depreciation on the tax return is greater than depreciation on the income statement by $43,200. 3. Interest on an investment in a municipal bond of $5,900 on the income statement. Carla' tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. (a) Your answer has been saved. See score details after the due date. Compute taxable income and income taxes payable for 2020. Taxable income 275,800 Income taxes payable B2,740 Attempts: 1 of 1 used (b) Your answer has been saved. See score details after the due date Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit…
Martinez Corporation reports pretax financial income of $264,100 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Rental income on the income statement is less than rent collected on the tax return by $65,200. Depreciation on the tax return is greater than depreciation on the income statement by $41,800. Interest on an investment in a municipal bond of $7,000 on the income statement. 3. Martinez' tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. (a) Compute taxable income and income taxes payable for 2020. Taxable income $enter a dollar amount Income taxes payable $enter a dollar amount 2.
Carla Vista Corporation reports pretax financial income of $265,900 for 2025. The following items cause taxable income to be different than pretax financial income: 1. Rental income on the income statement is less than rent collected on the tax return by $64,100. Depreciation on the tax return is greater than depreciation on the income statement by $41.200. Interest on an investment in a municipal bond of $8,000 on the income statement. 2. 3. Carla Vista' tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2025. (a) Your Answer Correct Answer (Used) Compute taxable income and income taxes payable for 25. Taxable income Income taxes payable 280,800 84,240 Q
Sheridan Corporation reports pretax financial income of $263,500 for 2025. The following items cause taxable income to be different than pretax financial income: 1. Rental income on the income statement is less than rent collected on the tax return by $61,900. 2. Depreciation on the tax return is greater than depreciation on the income statement by $43,600. 3. Interest on an investment in a municipal bond of $6,500 on the income statement. Sheridan' tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2025. (a) Your answer is correct. Compute taxable income and income taxes payable for 2025. (b) Taxable income $ 275300 Income taxes payable $ 82590 eTextbook and Medla List of Accounts Your answer is correct. Attempts: 1 of 3 used Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025.(Credit account titles are automatically indented…
Metals Corporation reports pretax financial income of $260,000 for 2019. The following items cause taxable income to be different than pretax financial income:1.Depreciation on the tax return is greater than depreciation on the income statement by $40,000.2.Rental income on the income statement is less than the rent collected on the tax return by $65,000.3.Interest on an investment in a municipal bond of $6,500 on the income statement.Metal’s tax rate is 40% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2019. Instructions(a)Compute taxable income and income taxes payable for 2019.(b)Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019.(c)Prepare the income tax expense section of the income statement for 2019, beginning with the line “Income before income taxes.”
Nirvana Corporation reports pretax financial income of $260,000 for 2022. The following items cause taxable income to be different than pretax financial income. Rental income on the 2022 tax return is $65,000 greater than on the income statement. Depreciation expense on the tax return is greater than depreciation on the income statement by $40,000. Interest on an investment in a municipal bond of $6,500 is reported on the income statement. Nirvana's tax rate is 25% for all years. There are no deferred taxes at the beginning of 2022. The company expects to realize only 40% of the benefit of any deferred tax assets. The fiscal year ends December 31, 2022. Required: 1. Prepare the journal entries to record i) income tax expense, income taxes payable, and deferred income taxes for 2022, and ii) any valuation allowance needed. 2. Indicate clearly what would be reported on the income statement beginning with income before income taxes for the year ended December 31, 2022 from just…
Bonita Company reports pretax financial income of $76,500 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $15,700. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $23,400. 3. Fines for pollution appear as an expense of $10,500 on the income statement. Bonita’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. Compute taxable income and income taxes payable for 2020. Taxable income $enter a dollar amount Income taxes payable $enter a dollar amount Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credit account titles are automatically indented when amount is…
Teal Company reports pretax financial income of $72,600 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $17,200. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $20,300. 3. Fines for pollution appear as an expense of $9,900 on the income statement. Teal’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. (a) Compute taxable income and income taxes payable for 2020. Taxable income $enter a dollar amount Income taxes payable $enter a dollar amount
Splish Company reports pretax financial income of $65,800 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $16,700. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $20,500. 3. Fines for pollution appear as an expense of $10,200 on the income statement. Splish's tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. (a) Compute taxable income and income taxes payable for 202O. Taxable income Income taxes payable %24 %24
Zurich Company reports pretax financial income of $70,000 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $16,000. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $22,000. 3. Fines for pollution appear as an expense of $11,000 on the income statement. Zurich's tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020. Instructions a. Compute taxable income and income taxes payable for 2020. b. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. c. Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.” d. Compute the effective income tax rate for 2020.
Marigold Company reports pretax financial income of $72,000 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $14,700.2. Rent collected on the tax return is greater than rent recognized on the income statement by $24,200.3. Fines for pollution appear as an expense of $11,900 on the income statement. Marigold’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020 Compute taxable income and income taxes payable for 2020. Taxable income? Income taxes payable? Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.? Prepare the income tax expense section of the income statement for 2020, beginning with the line “Income before income taxes.