1 Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts:1.2.3.4.5.6.7.8.($ in millions)Temporary Differences Reported First on:The Income StatementThe Tax ReturnRevenue$ 24191919Expense$2424242424RevenueSituations Taxable Income12345678$24199Expense$ 241414Required:For each situation, determine taxable income, assuming pretax accounting income is $140 million.Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).

Revenue is the money that a business makes from its activities. There are several techniques for…

Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts: ($ in millions) Temporary Differences Reported First on: The Income Statement The Tax Return Revenue $ 24 1. 2. ANMI 3. 4. 5. 6. 7. 8. 19 19 19 Expense $ 24 24 24 24 24 Revenue Situations Taxable Income 1 2 3 4 5 6 7 8 $24 19 9 Expense $ 24 14 66 14 Required: For each situation, determine taxable income, assuming pretax accounting income is $140 million. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).

Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts: ($ in millions) Temporary Differences Reported First on: The Income Statement The Tax Return Revenue $ 24 1. 2. ANMI 3. 4. 5. 6. 7. 8. 19 19 19 Expense $ 24 24 24 24 24 Revenue Situations Taxable Income 1 2 3 4 5 6 7 8 $24 19 9 Expense $ 24 14 66 14 Required: For each situation, determine taxable income, assuming pretax accounting income is $140 million. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 1P: Definitions The FASB has defined several terms in regard to accounting for income taxes. Below are...

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Definitions The FASB has defined several terms in regard to accounting for income taxes. Below are various code letters (for terms) followed by definitions. 1. The deferred tax consequences of future deductible amounts and operating loss carryforwards 2. A difference between the tax basis of an asset or liability and its reported amount in the financial statements that will result in taxable or deductible amounts in future years when the reported amount of the asset or liability is recovered or settled, respectively 3. Temporary difference that results in taxable amounts in future years when the related asset or liability is recovered or settled, respectively 4. The future effects on income taxes, as measured by the applicable enacted tax rate and provisions of the enacted tax low, resulting from temporary differences and operating loss carryforwards at the end of the current year 5. The change during the year in a corporations deferred tax liabilities and assets 6. The deferred tax consequences of future taxable amounts 7. The portion of o deferred tax asset for which it is more likely than not that a tax benefit will not be realized 8. Temporary difference that results in deductible amounts in future years when the related asset or liability is recovered or settled, respectively 9. The sum of income tax payable and deferred tax expense (or benefit) 10. The amount of income taxes paid or payable (or refundable) for the current year 11. An excess of tax deductible expenses over taxable revenues in a year that may be carried forward to reduce taxable income in a future year 12. The excess of taxable revenues over tax deductible expenses and exemptions for the year 13. Income tax expense divided by income before income taxes
Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts: ($ in millions) Temporary Differences Reported First on: The Income Statement Revenue The Tax Return Expense $29 Revenue Вхрense 1. 2. $29 3. $29 4. $29 5. 6. 7. 8. 24 29 29 29 24 24 19 19 24 29 14 Required: For each situation, determine taxable income, assuming pretax accounting income is $190 million. (Enter'your answers in millions (I.e., 10,000,000 should be entered as 10).) Situations Taxable Income 1 4. 5. 6. 8
Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts ($ in millions). Temporary Differences Reported First on: The Income Statement The Tax Return Revenue Expense Revenue Expense 1. $20 2. $20 3. $20 4. $20 5. 15 20 6. 20 15 7. 15 20 10 8. 15 20 5 10 Required: For each situation, determine taxable income, assuming pretax accounting income is $100 million.
Eight Independent situations are described below. Each involves future deductible amounts and/or future taxable amounts: 1. 2. 3. 5. 6. 7. 2 The Income Statement Revenue 3 4 5 6 7 8 ($ in millions) Temporary Differences Reported First on: The Tax Return $24 19 19 19 Expense $24 Situations Taxable Income 1 24 24 24 24 Revenue $24 19 9 Expense Required: For each situation, determine taxable income, assuming pretax accounting income is $140 million. (Enter your answers in millions (I.e., 10,000,000 should be entered as 10).) $24 14 14
Save & Exit Subm Two independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: SITUATION Taxable income Amounts at year-end: Future deductible amounts 2. $46,000 $86,000 5,600 10,600 0 5,600 Future taxable amounts Balances at beginning of year, dr (cr): Deferred tax asset, Deferred tax liability $ 1,000 $ 3,180 0 1,000 The enacted tax rate is 30% for both situations. Required: For each situation determine the: SITUATION 2. (a.) Income tax payable currently. (b.) Deferred tax asset - balance at year-end. (c.) Deferred tax asset change dr or (cr) for the year. (d.) Deferred tax liability - balance at year-end. (e.) Deferred tax liability change dr or (cr) for the year. (f.) Income tax expense for the year. Next > 31 of 39
Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts: 1. 2. 3. 4. 5. 6. 7. 8. ($ in millions) Temporary Differences Reported First on: The Income Statement The Tax Return Revenue $22 7 8 17 17 17 Expense $ 22 2222 Situations Taxable Income 1 $ 122 2 3 4 5 6 Revenue $22 17 7 Expense $22 Required: For each situation, determine taxable income, assuming pretax accounting income is $120 million. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). 12 12
Compute for the tax due (A,B,C) for the below taxable income based on the Income Tax Tables: TAXABLE INCOME (Annual) TAX DUE P300,000 A P500,000 B P800,000 C .
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: ($ in thousands) _____ Situation________ 1 2 3 4 Taxable income $100 $232 $228 $308 Future deductible amounts 16 20 20 Future taxable amounts 16 16 44 Balance (s) at…
Eight independent situations are described below. Each involves future deductible amounts and/or future taxable amounts: ($ in millions) Temporary Differences Reported First on: The Income Statement The Tax Return Revenue Expense Revenue Expense 1. $40 2. $40 3. $40 4. $40 5. 35 40 6. 40 35 7. 35 40 30 8. 35 40 25 30 Required:For each situation, determine taxable income, assuming pretax accounting income is $300 million.
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: ($ in thousands) Situation 1 2 з 4 Taxable income $85 $215 $195 $260 Future deductible amounts 15 20 20 Future taxable amounts 15 15 30 Balance(s) at beginning of the year: Deferred tax asset 2 9 Deferred tax liability 2 The enacted tax rate is 40%. Required: For each situation, determine the: a. Income tax payable currently b. Deferred tax asset-balance c. Deferred tax asset-change (dr) er d. Deferred tax liability–balance e. Deferred tax liability-change (dr) cr f. Income tax expense 2.
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences reported first on: (1) (2) (3) (4) Income Statement Revenue $ 22,500 $ 15,500 $ 15,500 Accounting income Temporary differences: Income statement first Expense Revenue Expense Tax return first: Revenue Expense Taxable income $ 22,500 $ 22,500 $ Required: For each situation, determine the taxable income assuming pretax accounting income is $100,000. Note: Amounts to be deducted should be indicated by a minus sign. (1) Revenue $ 22,500 Tax Return. 0 $ (2) Expense 0 $ $ 10,500 (3) 0 $ 0
Four independent situations are described below. Each involves future deductible amounts and/or future taxable amounts produced by temporary differences: ($ in thousands) Situation 1 2 3 4 Taxable income $ 116 $ 248 $ 260 $ 356 Future deductible amounts 16 20 20 Future taxable amounts 16 16 60 Balance(s) at beginning of the year: Deferred tax asset 2 17 4 Deferred tax liability 8 2 The enacted tax rate is 25%. Required: For each situation, determine the following: Note: Enter your answers in thousands rounded to one decimal place (i.e. 1,200 should be entered as 1.2). Negative amounts should be indicated by a minus sign. Leave no cell blank, enter "0" wherever applicable.