Business, 21.03.2020 08:59 bri9263

The following facts relate to Duncan Corporation.
1. Deferred tax liability, January 1, 2020, $21,800.
2. Deferred tax asset, January 1, 2020, $0.
3. Taxable income for 2020, $103,550.
4. Pretax financial income for 2020, $218,000.
5. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $261,600.
6. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $38,150.
7. Tax rate for all years, 20%.
8. The company is expected to operate profitably in the future.
Required:
a. Compute the amont of pretax financial income for 2020.
b. Prepare the journal entry to record income tax expense, deferred income taxes and income taxes payable for 2020.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 21:00

Sheldon has the following year-end account balances: accounts receivable, $5,000; supplies, $12,000; equipment, $18,000; accounts payable, $17,000; stockholders’ equity, $43,000. the cash account balance was not available at year-end. given the account balances listed, the balance in the cash account should be?

Answers: 2

Answer

Business, 22.06.2019 08:40

Which of the following is not a characteristic of enterprise applications that cause challenges in implementation? a. they introduce "switching costs," making the firm dependent on the vendor. b. they cause integration difficulties as every vendor uses different data and processes. c. they are complex and time consuming to implement. d. they support "best practices" for each business process and function. e. they require sweeping changes to business processes to work with the software.

Answers: 1

Answer

Business, 22.06.2019 11:40

In early january, burger mania acquired 100% of the common stock of the crispy taco restaurant chain. the purchase price allocation included the following items: $4 million, patent; $3 million, trademark considered to have an indefinite useful life; and $5 million, goodwill. burger mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. what is the total amount of amortization expense that would appear in burger mania's income statement for the first year ended december 31 related to these items?

Answers: 2

Answer

Business, 22.06.2019 17:00

Jillian wants to plan her finances because she wants to create and maintain her tax and credit history. she also wants to chart out all of her financial transactions for the past federal fiscal year. what duration should jillian consider to calculate her finances? from (march or january )to (december or april)?

Answers: 1

Answer

You know the right answer?

The following facts relate to Duncan Corporation.
1. Deferred tax liability, January 1, 2020,...

Questions