Reference no: EM13817225
(Three Differences, No Beginning Deferred Taxes, Multiple Rates)
The following information is available for Remmers Corporation for 2014.1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This difference will reverse in equal amounts of $30,000 over the years 2015-2018.
2. Interest received on municipal bonds was $10,000.
3. Rent collected in advance on January 1, 2014, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, 2014, for book purposes.
4. The tax rates are 40% for 2014 and 35% for 2015 and subsequent years.
5. Income taxes of $320,000 are due per the tax return for 2014.
6. No deferred taxes existed at the beginning of 2014.
Instructions
(a) Compute taxable income for 2014.
(b) Compute pretax financial income for 2014.
(c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2014 and 2015. Assume taxable income was $980,000 in 2015.
(d) Prepare the income tax expense section of the income statement for 2014, beginning with "Income before income taxes."
Negative bank balance of approximately
: To expand operations, Henson acquired office equipment and spent large amounts on fundraising. During Henson's tenure, Better Days Ahead has maintained a negative bank balance of approximately $10,000.
|
Creation of human life in the laboratory
: creation of human life in the laboratory
|
Do you think we should increase nasas budget
: Do you think we should increase NASA's budget, but perhaps the same money could be put to better use elsewhere? If you think it is better used elsewhere, what is the U.S.'s current federal budget for that item.
|
Define program risk and define institutional risk
: An enterprise risk management framework should include both program risk and institutional risk. Define program risk. Define institutional risk.
|
Three differences-no beginning deferred taxes-multiple rates
: The following information is available for Remmers Corporation for 2014.1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This difference will reverse in equal amounts of $30,000 over th..
|
Marginal revenue exceeds marginal cost
: If the firm is producing at a quantity of output where marginal revenue exceeds marginal cost, then,
|
What has changed about the roles of women in the religion
: How is this religion responding to challenges in the modern world? What has changed about the roles of women in the religion over time?
|
Confidence interval for the population mean replacement cost
: Suppose you are a researcher for a consumer’s advocate magazine. You want to find a sample of cars whose owners have paid for rebuilt transmissions. So, you randomly select a sample of 40 replacement costs and find the mean to be $2,585. The sample s..
|
Pension plan of radcliffe company
: Question 1: The following information is available for the pension plan of Radcliffe Company for the year 2014.
|