Prepare journal entry to record payne income taxes

Assignment Help Financial Accounting

Reference no: EM13136891

At the end of 2010, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book–tax difference of $75 million in a liability for estimated expenses. At the end of 2011, the temporary difference is $70 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2011 is $180 million and the tax rate is 40%. Prepare the journal entry(s) to record Payne’s income taxes for 2011, assuming it is more likely than not that one-half of the deferred tax asset will ultimately be realized.

Reference no: EM13136891

Questions Cloud

The arguments made in favor and against of home schooling : what are thoughts regarding the arguments made IN FAVOR of home schooling and AGAINST home schooling?

What general fund journal entry should grand marais make : Grand Marais city's fiscal year ends on June 30. Jasper uses encumbrance accounting. On May 6, a purchase order was approved and issued for supplies in the amount of $5,000. Grand Marias received these supplies on June 2, and the $5,000 invoice wa..

What amount of qpai is available to green : The cost of goods sold is $5 for one skirt and $6 for one bluse. Other allocated costs are $1 for one skirt and $5 for one blusel. what amount of QPAI is available to Green for claculating the DPAD?

Balance sheet for decision making : Discuss the usefulness of the Balance Sheet for decision making. What types of decisions (and by whom) are made using data obtained from the Balance Sheet.

Prepare journal entry to record payne income taxes : Taxable income for 2011 is $180 million and the tax rate is 40%. Prepare journal entry(s) to record Payne’s income taxes for 2011, assuming it is more likely than not that one-half of the deferred tax asset will ultimately be realized.

Discuss the three sections of the indirect method : Discuss the three sections of the indirect method of presentation for the Statement of Cash Flows. Also discuss why the statement of cash flow is just as important as the income statement.

What is the theoretical yield of bromobenzene : What is the theoretical yield of bromobenzene in this reaction when 30.0 g of benzene reacts with 65.0 g of bromine?

Cost of goods maufactured : cost of goods maufactured? direct labor cost? direct materials cost? manufacturing overhead applied? manufacturing overhead was (how much) over or under applied?

Find probability that average diameter is more-centimeters : Find the probability that the average diameter of those sand dollars is more than 2.707 centimeters. Assume that the variable is normally distributed.

User Account

All Pages