Business, 06.04.2020 17:01 AnonymousLizard52303
Burger King is a cash-basis taxpayer but maintains its financial accounting records using full
accrual accounting. In the current year, the company sold a parcel of land resulting in a gain of
$10,000. However, the receivable will not be collected until next year at which time the gain will
be taxed.
Federal income tax law specifies a ‘graduated’ tax structure as follows:
The first $20,000 of income is taxed at a rate of 10%.
All income above $20,000 is taxed at a rate of 20%.
During the current year, Burger King had taxable income of $38,000. Next year, Burger King
anticipates that taxable income (after including the $10,000 gain) will be approximately $40,000.
Question
What tax rate should Burger King use in measuring (recording) deferred taxes on the $10,000
gain?
Required
1. Provide a brief written description of the proper tax rate to use in measuring deferred tax
expense for the current year.
Facts
Burger King is a cash-basis taxpayer but maintains its financial accounting records using full
accrual accounting. In the current year, the company sold a parcel of land resulting in a gain of
$10,000. However, the receivable will not be collected until next year at which time the gain will
be taxed.
Federal income tax law specifies a ‘graduated’ tax structure as follows:
The first $20,000 of income is taxed at a rate of 10%.
All income above $20,000 is taxed at a rate of 20%.
During the current year, Burger King had taxable income of $38,000. Next year, Burger King
anticipates that taxable income (after including the $10,000 gain) will be approximately $40,000.
Question
What tax rate should Burger King use in measuring (recording) deferred taxes on the $10,000
gain?
Required
1. Provide a brief written description of the proper tax rate to use in measuring deferred tax
expense for the current year.
Answers: 1
Business, 22.06.2019 11:40
During 2016, nike inc., reported net income of $3,760 million. the company declared dividends of $1,022 million. the closing entry for dividends would include which of the following? select one: a. credit cash for $1,022 million b. credit dividends for $1,022 million c. debit net income for $1,022 million d. credit retained earnings for $1,022 million e. debit dividends for $1,022 million
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Tl & co. is following a related-linked diversification strategy, and soar inc. is following a related-constrained diversification strategy. how do the two firms differ from each other? a. soar inc. generates 70 percent of its revenues from its primary business, while tl & co. generates only 10 percent of its revenues from its primary business. b. soar inc. pursues a backward diversification strategy, while tl & co. pursues a forward diversification strategy. c. tl & co. will share fewer common competencies and resources between its various businesses when compared to soar inc. d. tl & co. pursues a differentiation strategy, and soar inc. pursues a cost-leadership strategy, to gain a competitive advantage.
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The huntington boys and girls club is conducting a fundraiser by selling chili dinners to go. the price is $7 for an adult meal and $4 for a child’s meal. write a program that accepts the number of adult meals ordered and then children's meals ordered. display the total money collected for adult meals, children’s meals, and all meals.
Answers: 2
Burger King is a cash-basis taxpayer but maintains its financial accounting records using full
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