Prepare the journal entry at the end

Assignment Help Accounting Basics
Reference no: EM132960501

Question - Skysong Corp. has a deferred tax asset account with a balance of $73,800 at the end of 2019 due to a single cumulative temporary difference of $369,000. At the end of 2020, this same temporary difference has increased to a cumulative amount of $471,000. Taxable income for 2020 is $890,000. The tax rate is 20% for all years. No valuation account related to the deferred tax asset is in existence at the end of 2019.

(a) Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not that the deferred tax asset will be realized.

(b) Assuming that it is more likely than not that $20,400 of the deferred tax asset will not be realized, prepare the journal entry at the end of 2020 to record the valuation account.

Reference no: EM132960501

Questions Cloud

What is the rebate expense and liability : During 2021, 4,000,000 packages of light bulbs are sold, and 190,000, $2 rebates were mailed to customers. What is the rebate expense and liability
What is Avicorp pre-tax cost of debt : Problem - Avicorp has a $11.4 million debt issue outstanding, with a 6.1% coupon rate. What is Avicorp pre-tax cost of debt
Determine the Carrying amount of the bonds as of January : The company also incurred costs in the conversion amounting to P250,000 which were paid in cash. Determine the Carrying amount of the bonds as of January
Determine the rate of depreciation : A company purchased a machinery for rs.12,000. It's useful life is 10 years and the scrap value is rs 1,200. Determine the rate of depreciation
Prepare the journal entry at the end : Assuming that it is more likely than not that $20,400 of the deferred tax asset will not be realized, prepare the journal entry at the end
What journal entry would this firm makes on June : On December 31, 2020, a firm issued a $200 million 3.00% Senior Notes due on December 31, 2022. What journal entry would this firm makes on June
Compensation structures disadvantage women : Is it fair to say that compensation structures disadvantage women? Explain.
What are some of the benefits of internships : Why do you think companies are beginning to trust interns to do more meaningful work than the stereotypical "intern tasks" such as getting coffee and making cop
What is the value of ending inventory using full costing : During the year, Oak Ridge produces 45,900 snow shovels and sells 40,860 snow shovels. What is the value of ending inventory using full costing

Reviews

Write a Review

Accounting Basics Questions & Answers

  How provide an example of the investment decisions

How Provide an example of the investment and financing decisions that financial managers make. dentify and describe one (1) of the financial markets.

  Journalize the purchase and sale of the common stock

On December 1, Shaw sells the stock investments for $32,500 in cash. Journalize the purchase and sale of the common stock

  Compute the current ratio and accounts receivable turnover

Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover and days in inventory at the end of the current year.

  Describe the cfos proposed solution in your discussion

assume you work as an assistant accountant in the head office of a national movie rental business a la blockbuster inc.

  What are the cash flows from operating activities

Provide a concise assessment of the firm based on sources and usage of cash information provided in the statement of cash flows

  Compute the amount of minimum paid-up share capital

Journalize the above transactions - Underwriters' commission, P15,000 for the issuance of 2,000 shares at par of P100 issued at 120%

  Calculate Cranberry regular income tax liability

If the current year is a calendar year ending on December 31, 2018, calculate Cranberry's regular income tax liability

  Prepare journal entries for the purchase of the investment

Assuming Luke Corp applied IFRS, prepare its journal entries for the purchase of the investment and receipt of semi-annual interest

  Determine the company''s net income

Nico Mitchell started a new business, Nico's Solutions, and completed the following transactions during its first year of operations.

  Do think the interest rates will likely increase or decrease

Interest rates in developing countries. Based on the prevailing conditions, do you think the interest rates will likely increase or decrease in the coming year?

  Explain the accounting profits

Explain how the accounting profits (or losses) of an unsubsidized public enterprise, the output of which creates positive externalities for other firms.

  Prepare the journal entry for February

Jet Fuel Ltd. has a customer rewards program. For every litre of gas Jet Fuel sells, Prepare the journal entry for February reflecting the actual loyalty

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd