The income taxes on the books of seminole

Assignment Help Accounting Basics
Reference no: EM13503313

For all years (2003-2005) Seminole Corp has preliminary pretax book income of $80,000. Included in the $80,000 each year is $10,000 of municipal bond income that is not taxable under IRS rules. Not included in the $80,000 is $60,000 of gain from an investment sold in 2003. The buyer of the investment will pay Seminole the $60,000 over 3 years ($20,000 in 2003, 2004, 2005). For financial reporting purposes, all of the gain should be on the P&L in the period the investment was sold. For tax purposes, the company qualifies for the installment sales method meaning that the gain will be taxed as the cash is received. The tax rate was 35% in 2003, and 30% in 2004 and 2005. The 30% rate was not enacted in law until the first day of 2004. There are no DTA/DTL balances prior to 2003. The installment receivable is shown on the balance sheet as part current, part long term.

Required:
1. All journal entries to record the income taxes on the books of Seminole for each year.
2. Show how deferred income taxes will appear on the B/S of Seminole at the end of each year. Just give me the caption (DTA and/or DTL), the amount and whether it should be long term or current.
3. Show a quick P&L of the income tax expense section of the P&L for each year.

Reference no: EM13503313

Questions Cloud

Strategic management accounting case study : Strategic Management Accounting Case Study - prepare a 'before and after' comparative analysis of the revenues and costs of the 'Nutty Nut' product line incorporating the 20% predicted sales increase and the 10% predicted savings in prime costs
Obtain the average power dissipated in the circuit : A 3400 resistor and a 1.6 µF capacitor are connected in series across a generator (60.0 Hz, 120 V rms). Determine the average power dissipated in the circuit
Find the net gravitational force exerted by these objects : Objects with masses of 295 kg and a 595 kg are separated by 0.300 m. Find the net gravitational force exerted by these objects
Define acid-base equilibrium system is created by disolving : An acid-base equilibrium system is created by disolving 0.10 mol HF in water to a volume of 1.0 L. What is teh effect of adding 0.050 mole F-(aq) to this solution
The income taxes on the books of seminole : All journal entries to record the income taxes on the books of Seminole for each year.
Impact of the changes on the cost structure : The likely impact of the changes on the cost and profit structure of Jupiter Confectionery and calculate and discuss the likely impact of the changes on the cost structure of 'N&N's' our main competitor
Find the frequency of the generator : A 0.047 H inductor is wired across the terminals of a generator that has a voltage of 2.1 V and supplies a current of 0.021 A. Find the frequency of the generator
Explain what is the molar mass of the unknown acid : A 10.0 mL aliquot of this weak acid solution was titrated with a 0.0498 M NaOH solution. The equivalence point was reached by adding 11.62 ml of NaOH from the buret. What is the molar mass of this unknown acid
How much heat is transferred to the environment : In a closed but uninsulated container, 500g of water is shaken until it's temperature increases by 3 degrees Celsius. How much heat is transferred to the environment during the process

Reviews

Write a Review

Accounting Basics Questions & Answers

  Why is accounting for contributions so critical

Why is accounting for contributions so critical for a not-for-profit entity? For example, what complications can arise if a donor places conditions on a pledged contribution or imposes restrictions on the use of the money by the organization? What..

  Rise of adjusted gross income

The partnership made an ordinary cash distribution of $10,000 to Marcie, and paid guaranteed payments to partners Marcie, Alice, and Pat of $20,000 each ($60,000 total). How much will Marcie's adjusted gross income increase as a result of the abov..

  Uacos gross receipts for year are 200 million under what

usaco a domestic corporation owns all of the stock of fsubco a foreign corporation. fsubco manufactures widgets and

  An examination of the accounting records of clowney

an examination of the accounting records of clowney company disclosed a high contribution margin ratio and production

  Production cost information

Consider the production cost information for Santiago's Salsa in Problem 1-1. The company is currently producing and selling 325,000 jars of salsa annually.The jars sell for $5.00 each. The company is considering lowering the price to $4.60. Suppo..

  Which tax attributes are reduced and by how much

During bankruptcy, US Corporation debt was reduced from $780,000 to $400,000. USA Corporation's assets are valued at $500,000. USA's NOL carryover was $400,000.

  Accounting data used to make business decisions

You have been hired as the CFO of a new company and are determining the companies accounting needs. The first question you answered which was Explain to your staff at least 2 ways in which accounting data are used to make business decisions.

  Accrual of interest and amortization of bond discount

On August 1, Stuart Co. issued $1,300,000 of 20-year, 9% bonds, dated August 1, for $1,225,000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions for the current year:

  What is the amount of gain or loss on transaction

Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $30,000. What is the amount of the gain or loss on this transaction?

  Prepare a partial balance sheet for santana at december 31

on december 31 2014 santana company has 7194600 of short-term debt in the form of notes payable to golden state bank

  Houston fashions is considering a new product line that

houston fashions is considering a new product line that would require an investment of 140000 in fixtures and displays

  Compute trend percentages for the following items taken

compute trend percentages for the following items taken fromthe financial statements over a five year period. treat

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