Case development began operations in december 2011 when

Assignment Help Accounting Basics

Reference no: EM13602079

Case Development began operations in December 2011. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2011 installment income was $600,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2012-2014 are as follows:

2012 $150,000 30%
2013 250,000 40
2014 200,000 40

Pretax accounting income for 2011 was $810,000, which includes interest revenue of $10,000 from municipal bonds. The enacted tax rate for 2011 is 30%.

Required:

1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case's 2011 income taxes.

2. What is Case's 2011 net income?

3. How should the deferred tax amount be classified in a classified balance sheet?

Reference no: EM13602079

Questions Cloud

A ten-year annuity-due with annual payments pays 150 today : a ten-year annuity-due with annual payments pays 150 today and each subsequent payment decreases by 10 per year for 4

The length of a seconds pendulum is09928m at tokyo : question a seconds pendulum is one that moves through its equilibrium position once each second. the period of the

Dtermine magnitude and direction expressed by the angle : the slider p can be moved by means of the string s while the slotted arm rotates about point o. the angular position

Assuming the under- or overapplied overhead for the year is : duggan company applies manufacturing overhead to jobs on the basis of machine hours used. overhead costs are expected

Case development began operations in december 2011 when : case development began operations in december 2011. when property is sold on an installment basis case recognizes

Complete the condensed cost of goods manufactured schedule : at may 31 2012 the accounts of mantle manufacturing company show the following. may 1 inventories-finished goods 12900

How do you calculate the position of the eyering on an : how do you calculate the position of the eyering on an astronomical telescope? in other words how do you find the

At december 31 depaul corporation had a 16 million balance : at december 31 depaul corporation had a 16 million balance in its deferred tax asset account and a 68 million balance

If the pressure is 10 psi at the 2in diameter section find : fluid is flowing horizontally at 100gpm from a 2in diameter pipe to a 1in diameter pipe. if the pressure is 10 psi at

User Account

All Pages