Analyze the temporary differences

Assignment Help Accounting Basics
Reference no: EM131884566

Question: 1. The accounting records of Lyndon Inc. show the following data for 2017 (its first year of operations):

a. Life insurance expense on officers was $9,000.

b. Equipment was acquired in on January 1, for $300,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Lyndon used a 30% rate to calculate depreciation.

c. Interest revenue on New York State bonds totaled $4,000.

d. Product warranties were estimated to be $50,000 in 2017. The entity did not make cash outlays for warranty claims until 2018.

e. Fines incurred for pollution violations were $4,200.

f. Pretax financial income was $750,000. The tax rate is 30%.

Required: Prepare a schedule to arrive at adjusted pretax financial reporting income (reflecting all permanent difference). Analyze the temporary differences and prepare the journal entry to account for 2017 income taxes.

Reference no: EM131884566

Questions Cloud

Calculate the factory overhead variances : The actual production was 2500 motors and factory overhead costs totaled $29750. Calculate the factory overhead variances using the two-variance method
What is the intended meaning of the given queries : Write a PROLOG program which checks if a list contains another as a sublist. What is the intended meaning of the given queries?
Determine the accounts receivable turnover : Company reports the following: Net sales $1,368,750 Average accounts receivable (net) $109,500 Round your answers to one decimal place.
Calculate the amount of materials price variance : Calculate the Amount of materials price variance to be prorated to finished goods inventory at Dec. 31 and Total amount of direct materials cost
Analyze the temporary differences : Prepare a schedule to arrive at adjusted pretax financial reporting income (reflecting all permanent difference). Analyze the temporary differences.
Find the most general unifier : Find the most general unifier for f (X, g (a, Z, W), a, h (X, b, W)) and f (h (a, Z), g (a, h (Z, b), X), Z, h (d, b, a))
How much must brooks pay back at maturity : Duncan Brooks Co. needs to borrow $500,000 to open new stores. Brooks can borrow $500,000, How much must brooks pay back at maturity
Define the role and responsibility of all team members : The project is designed to give you an in-depth teamwork experience with an information technology, application, product, service, trend or a related topic.
Describe the treatment of a not-for-profit : Describe the treatment of a not-for-profit, nongovernmental foundation that is related to a public university under GASB standards.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd