Reference no: EM132031244
Problem - At the end of its first year of operations on Dec 31, 2014, the Odessa Company reported pretax financial income of $240,000.
In arriving at taxable income for income tax purposes, the following items were identified as relevant to the tax position. Assume tax assets are considered more likely than not to be realized.
Bad debt expense for financial statements - $24,000
Bad debts written off for tax purposes - $5,000
Officers life insurance premium expense - $8,000
MACRS depreciation on the tax return exceeds
Depreciation for financial reporting purposes - $44,000
Interest Income on municipal bonds of was received in 2014 - $5,000
The enacted corporate income tax rate for all years is - 30%
Required:
a) Compute taxable income.
b) Prepare the journal entries to record income tax expense and any related deferred tax assets and liabilities for 2014.
c) What is the total amount of income tax expense for financial reporting in 2014?
|
What is the importance of the commercial funnel
: What is the importance of the commercial funnel and the application of new product development (NPD) processing for commercialisation of innovation
|
|
What is the compounded annual rate
: Payday loans are very short-term loans that charge very high interest rates. You can borrow $400 today and repay $480 in two weeks.
|
|
Dependent variable and independent variable
: What is the difference between a dependent variable and independent variable in marketing and what is an example of each?
|
|
What is the expected current yield
: For the coming year, what is the expected current yield? (Hint: Refer to footnote 7 for the definition of the current yield and to Table 7.1.)
|
|
Prepare the journal entries to record income tax expense
: Assume tax assets are considered more likely than not to be realized. Prepare the journal entries to record income tax expense
|
|
What is the eps before any debt is issued
: Pendergast inc. has no debt outstanding and a total market value of $180,000. Earnings before interest and taxes, EBIT are projected to be 23,000.
|
|
Technology has positively influenced our economy
: Technology has positively influenced our economy in three ways.
|
|
Plans four-year capital investment project
: White Waters Inc. plans a 4-year capital investment project, where it requires an asset that costs $160,000. What are its NPV, IRR, and MIRR?
|
|
Determine the projected benefit obligation
: Determine the Projected Benefit Obligation (PBO), the fair value of plan assets, and the funded status of the plan at December 31, 2014
|