Compute taxable income and income taxes payable

Assignment Help Accounting Basics

Reference no: EM139667

The Accent Corporation shows the following information. ?On January 1, 2012, Accent purchased a donut machine for $600,000.

A) Pretax financial income is $3,200,000 in 2012 and $3,500,000 in 2013.
B) Taxable income is expected in future years with an expected tax rate of 40%.?
C) The company recognized an extraordinary gain of $200,000 in 2013 (which is fully taxable).?
D) Tax-exempt municipal bonds yielded interest of $240,000 in 2013.?
E) Half-year convention for 6 years for financial reporting (See Appendix 11A.)?
F) Straight-line basis depreciation for 4 years for tax purposes

Required: Use Excel

1) Compute taxable income and income taxes payable for 2013.?
2) Prepare the journal entries for income tax expense, income taxes payable, and deferred taxes for 2013.?
3) Prepare the deferred income taxes presentation for December 31, 2013 balance sheet.

Reference no: EM139667

Questions Cloud

Computation of weighted cost of capital that is appropriate : Computation of weighted cost of capital and Compute the weighted cost of capital that is appropriate to use In evaluating this expansion program

Kohlbergs highest level of morality : What would the world be like if everyone operated at the Kohlberg's maximum level of morality?

Journal entries-perpetual inventory system : Prepare the journal entries to record the following transactions in Hunt Ltd’s records using the perpetual inventory system. (For multiple debit or credit entries, list accounts in order of magnitude.)

Determine the cost incurred by talbot partners : Determine the cost incurred by Talbot Partners compared to the benchmark cost - talbot Partners is planning a process improvement initiative aimed at reducing scheduling conflicts.

Compute taxable income and income taxes payable : Evaluate taxable income and income taxes payable. Prepare the journal entries for income tax expense, income taxes payable, and deferred taxes.

Psychological research investigating : Describe the methodological issues and challenges which are unique to psychological research investigating efficient treatments for psychological disorders.

Describe why the method used to allocate costs : You should assume that direct fixed costs will be avoided if a model is dropped but common fixed costs will not be model is dropped. Describe why the method used to allocate costs at Lennon results in "unreasonably high" charges to the Model 599 pu..

Review the decisions not to hire all applicants : What will you do if your employer has asked you to review the decisions not to hire all applicants for non-Hispanic employment in your company, what you need to consider?

Entry of financial statements : What entry must Sam's Painting Service make on December 31 before financial statements are prepared?

User Account

All Pages