Lance lawn services reports warranty expense by estimating

Assignment Help Accounting Basics

Reference no: EM13485085

Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the cost is incurred. At December 31, 2013, Lance has a warranty liability of $3 million and taxable income of $26 million. At December 31, 2012, Lance reported a deferred tax asset of $944,000 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate is 30% each year.

Required:

Prepare the appropriate journal entry to record Lance's income tax provision for 2013.

Reference no: EM13485085

Questions Cloud

As an auditor what areas would be of interest to you if you : as an auditor what areas would be of interest to you if you discovered during the planning stages of the audit that

The city will pay for the supplies from available : the city of upper falls accounts for its inventory using the purchases method. during the year the city bought 400000

In order to reimburse the county for expenditures for : washington county assumed the responsibility of collecting property taxes for all governments within its boundaries. in

Data pertaining to the postretirement health care benefit : data pertaining to the postretirement health care benefit plan of sterling properties include the following for 2013 in

Lance lawn services reports warranty expense by estimating : lance lawn services reports warranty expense by estimating the amount that eventually will be paid to satisfy

The risk-free rate is 8 the average market return is 12 : a project will require an cash outlay of 65000 and inflows of 12000 per year for 12 years. the project is expected to

The bootsie holding company has sales exceeding 10 billion : the bootsie holding company has sales exceeding 10 billion and each of its three wholly-owned subsidiaries has sales

Rankine company estimates its bad debts expense by aging : rankine company estimates its bad debts expense by aging its accounts receivable and applying percentages to various

Based solely on the information below and assuming that the : based solely on the information below and assuming that the projects are mutually exclusive if the firms cost of

User Account

All Pages