Use the information below to answer the question above.
Can someone help me with this question, please? I know the answer is C but im confused as to why. I know municipal interest is non-taxable so it is a 5000 permanent difference but why is the temporary difference 0? I thought it would be an 18000 temporary difference but based on the answer key I was wrong. Can someone explain it to me? please help and thank you in advance!
Homework Answers
The question asks for permanent difference and temporary difference "over the 4 year period".
Municipal Bond interest shall never be taxable and hence it is a permanent difference
Warrant expenses shall not be allowed in tax return in first year itself but "over the period of 4 years" the same shall be allowed as an expense in tax return.
Hence over the period of 4 years, temporary difference shall be 0
Therefore, answer is c.
Add Answer to:
Use the information below to answer the question above. Can someone help me with this question, please? I know the ans...
Use the information below to answer the question above. Can someone help me with this question,...
Use the information below to answer the question above.
Can someone help me with this question, please? it shows the
answer as b) $4050 but I dont know how it got that? is it a
deferred tax asset or deferred tax liability? show your work and
thanks in advance!
here PTFI is just abbreviation for pretax financial income and
TI is an abbreviation for taxable income.
10. Assume an enacted tax rate of 30% for all years. The rates are...
Use the information above to answer the following question. Hi can someone help me with this...
Use the information above to answer the following question.
Hi can someone help me with this question? I tried to solve but
I don't know if I did it right?
my work:
I subtracted the pretax financial income from the taxable income
and i got:
7000 - 20,500 = 13,500 x 0.30= -4050 <---- i got 7000 b/c I
deducted 5000 from 12,000 since it says municipal interest income
is non - taxable. I then subtracted 20,500 taxable income from...
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This is the whole entire problem. Can someone help me out on it,
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2. Problem 19-04 The accounting records of Flounder Inc. show the following data for 2020 (its first year of operations). 1. Life insurance expense on officers was $9,900. Equipment was acquired in early January for $288,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Flounder used a 30% rate to calculate depreciation. 3. Interest revenue on State...
Assume the following facts for Munoz Company in 2016. Munoz reported pretax financial income of $800,000....
Assume the following facts for Munoz Company in 2016. Munoz reported pretax financial income of $800,000. In addition, Munoz reported the following differences between its pretax financial income and taxable income: • Interest income of $80,000 was received during 2016 from an investment in municipal bonds. This income is exempt for tax purposes. • Rent income of $40,000 was collected in 2015 and included for tax purposes during that year. For financial statement purposes, it will be reported as earned...
The correct answer is listed at the bottom. Can someone please explain how to get this...
The correct answer is listed at the bottom. Can someone please
explain how to get this answer?
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i need help in this hw please Homework Assignment (Chapter 19: Accounting for Income Taxes) Johnny...
i need help in this hw please
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can someone please explain the illustration 16-1 and illustration 16-1A to me. I have to understand...
can someone please explain the illustration 16-1 and
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(I provided extra info if u need it)
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Please answer all parts, Thank you! The following information is available for Blue Corporation for 2016...
Please answer all parts, Thank
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Use the information below to answer the question above.
Can someone help me with this question, please? it shows the
answer as b) $4050 but I dont know how it got that? is it a
deferred tax asset or deferred tax liability? show your work and
thanks in advance!
here PTFI is just abbreviation for pretax financial income and
TI is an abbreviation for taxable income.
10. Assume an enacted tax rate of 30% for all years. The rates are...
Use the information above to answer the following question.
Hi can someone help me with this question? I tried to solve but
I don't know if I did it right?
my work:
I subtracted the pretax financial income from the taxable income
and i got:
7000 - 20,500 = 13,500 x 0.30= -4050 <---- i got 7000 b/c I
deducted 5000 from 12,000 since it says municipal interest income
is non - taxable. I then subtracted 20,500 taxable income from...
This is the whole entire problem. Can someone help me out on it,
please? Thank you.
2. Problem 19-04 The accounting records of Flounder Inc. show the following data for 2020 (its first year of operations). 1. Life insurance expense on officers was $9,900. Equipment was acquired in early January for $288,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Flounder used a 30% rate to calculate depreciation. 3. Interest revenue on State...
The correct answer is listed at the bottom. Can someone please
explain how to get this answer?
The first year of operations for Grayton Company is 2015. Given this information for 2015: Pretax book income Estimated litigation expense $800,000 200,000 100,000 100.000 Excess of tax over book depreciation Interest Income on municipal bonds No other permanent or temporary differences exist. The litigation item will be paid in 2016. The depreciation will reverse evenly over the next three years. Tax rate...
i need help in this hw please
Homework Assignment (Chapter 19: Accounting for Income Taxes) Johnny Bravo Ltd. began operations in 2019 and has provided the following information. 1. Pretax financial income for 2019 is £100,000. 2. The tax rate enacted for 2019 and future years is 40%. 3. Differences between the 2019 income statement and tax return are listed below. a. Warranty expense accrued for financial reporting purposes amounts to £5,000. Warranty deductions per the tax return amount to...
can someone please explain the illustration 16-1 and
illustration 16-1A to me. I have to understand this before the exam
tomorrow.
(I provided extra info if u need it)
TEMPORARY DIFFERENCES LO16-1 Describe the tybes of temporary differences that cause deferred tax liabilities and determine the amounts needed to record periodic income taxes. The differences in the rules for computing taxable income and those for financial reporting often cause amounts to be included in taxable income in a year...
Please answer all parts, Thank
you!
The following information is available for Blue Corporation for 2016 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $37,000. This $37,000 difference will reverse equally over the years 2017-2020. 2. Deferral, for book purposes, of $18,200 of rent received in advance. The rent will be recognized in 2017. 3. Pretax financial income, $296,200. 4. Tax rate for all years, 40%. Compute taxable income for 2016 Taxable income Prepare the...
Please help with part 3
Southern Atlantic Distributors began operations in January 2021 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2021, 30% in 2022, and 20% in 2023. Pretax accounting income for 2021 was $440,000, which includes interest revenue of $44,000 from municipal governmental bonds. The enacted tax rate is 25%. Assuming no...
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