Prepare the journal entrys to record paynes income taxes

Reference no: EM13480041

Deferred tax asset; taxable income given; valuation allowance

At the end of 2012, 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 2013, the temporary difference is $70 million. Payne has no other temporary differences and no valuation allowance for the deferred tax asset. Taxable income for 2013 is $180 million and the tax rate is 40%.

Required:
1.Prepare the journal entry(s) to record Payne's income taxes for 2013, assuming it is more likely than not that the deferred tax asset will be realized.
2.Prepare the journal entry(s) to record Payne's income taxes for 2013, assuming it is more likely than not that one-half of the deferred tax asset will ultimately be realize.

Reference no: EM13480041

Questions Cloud

Arrow enterprises uses a standard costing system the : arrow enterprises uses a standard costing system. the standard cost sheet for product no. 549 follows. direct materials

A fellow student says to you the statement of cash flows is : 1. a fellow student says to you the statement of cash flows is the easiest of the basic financial statements to prepare

All sales are made on account at 20 per unit sixty percent : the balance sheet of watson company as of december 31 19x1 follows. watson company balance sheet december 31 19x1

In your posting please articulate issues that the : in 200 words or more discuss the issues that relate to the accounting for operating and capital leases.in your posting

Prepare the journal entrys to record paynes income taxes : deferred tax asset taxable income given valuation allowance at the end of 2012 payne industries had a deferred tax

Sugarland company sells a single product and anticipates : sugarland company sells a single product and anticipates opening a new facility in charlotte on may 1 of the current

Lance lawn services reports warranty expense by estimating : temporary difference future deductible amounts taxable income given lance lawn services reports warranty expense by

Ayres services acquired an asset for 80 million in 2013 the : taxable income given calculate deferred tax liabilitylo16-1 ayres services acquired an asset for 80 million in 2013.

Ferguson metals is a decentralized mining smelting and : ferguson metals is a decentralized mining smelting and metals company with three divisions mining lead and copper.the

User Account

All Pages