Question

Kennedy Corporation changes its method of accounting for leases for tax purposes to conform with the...

Kennedy Corporation changes its method of accounting for leases for tax purposes to conform with the financial accounting method. As a result, both deferred and current taxes payable changed substantially.

What is the type of accounting change, if any?

Does the company restate prior-year financial statements? on intermediate Accounting

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In gathering information to prepare its 2021 financial statements, a company identified the following book-tax differences:...
In gathering information to prepare its 2021 financial statements, a company identified the following book-tax differences: The company accrued warranty expense of $27,000 on their financial statements but cannot deduct it on their income tax returns until the warranty claims are paid out. The company incurred $44,000 of meal and entertainment expenses during 2021. The company can only deduct 50% of these expenses on their tax returns. The company uses straight-line depreciation for financial accounting and accelerated depreciation for tax...
Prior to 2019, the accounting income and taxable income for Concord Corporation were the same. On...
Prior to 2019, the accounting income and taxable income for Concord Corporation were the same. On January 1, 2019, the company purchased equipment at a cost of $1,098,000. For accounting purposes, the equipment was to be depreciated over six years using the straight-line method and no residual value. For income tax purposes, the equipment was subject to a CCA rate of 30% (half-year rule applies for 2019). Concord’s income before tax for accounting purposes for 2020 was $12,900,000. The company...
When enacted tax rates change and a company has existing deferred tax liabilities or assets based...
When enacted tax rates change and a company has existing deferred tax liabilities or assets based on the previous tax rates, one accounting effect that results from the change in tax rates Question 1 options: nothing; rate changes should be ignored. is a gain or loss on tax rate change. is a credit to income taxes payable. is a debit or credit to income tax expense. Ajax Corporation had taxable income of $12,000 during 2020. Ajax used MACRS for tax...
The Pyramid Company has used the LIFO method of accounting for inventory during its first two...
The Pyramid Company has used the LIFO method of accounting for inventory during its first two years of operation, 2019 and 2020. At the beginning of 2021, Pyramid decided to change to the average cost method for both tax and financial reporting purposes. The following table presents information concerning the change for 2019–2021. The income tax rate for all years is 25%. Income before Income Tax Using Average Cost Method Using LIFO Method Difference Income Tax Effect Difference after Tax...
These are my financial accounting class question. 1. Assume the applicable statutory rate for Courtney Co....
These are my financial accounting class question. 1. Assume the applicable statutory rate for Courtney Co. is 40%. XYZ has income before taxes of $800,000. The Company's Income Statement includes a deduction for lobbying of 20,000 that is permanently not deductible for tax purposes and the tax return allows $150,000 more in depreciation deductions then what was an expense on the income statement. What is Courtney's net income if there are no discontinued operations? $472,000 $480,000 $532,000 $540,000 None of...
A) In 2017, Larkspur Corporation had pretax financial income of $164,000 and taxable income of $131,000....
A) In 2017, Larkspur Corporation had pretax financial income of $164,000 and taxable income of $131,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the amount to be reported as income taxes payable at December 31, 2017. B) Buffalo Corporation began operations in 2017 and reported pretax financial income of $212,000 for the year. Buffalo’s tax depreciation exceeded its book depreciation by $33,000. Buffalo’s tax...
Dream Home Inc., a real estate developing company, was accounting for its long-term contracts using the...
Dream Home Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract method prior to 2018. At the beginning of 2018, it changed to the percentage-of-completion method. The company decided to use the same for income tax purposes. The tax rate enacted is 40%. Income before taxes under both the methods for the past three years appears below.                                                                2016               2017               2018   Completed contract                         $650,000       $375,000       $350,000 Percentage-of-completion              825,000      ...
Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2018...
Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2018 before any adjusting entries or closing entries were prepared. Assume the tax rate for each company is 40% in all years. Any tax effects should be adjusted through the deferred tax liability account. Fleming Home Products introduced a new line of commercial awnings in 2017 that carry a one-year warranty against manufacturer’s defects. Based on industry experience, warranty costs were expected to approximate 2%...
Dixon Corporation complies with generally accepted accounting principles in accounting for income taxes. Dixon had pretax...
Dixon Corporation complies with generally accepted accounting principles in accounting for income taxes. Dixon had pretax book income of $700,000 in 2015. One temporary difference originated in 2015. Specifically, Dixon had revenue from item R of $150,000 for financial reporting (book) purposes in 2015; for income tax purposes the $150,000 of revenue will be recognized as follows: $50,000 in 2015, $50,000 in 2016 and $50,000 in 2017. The tax law in effect as of 1-1-2015 specified a tax rate of...
Multiple Choice Question 44 Sandhill Inc., a real estate developing company, was accounting for its long-term...
Multiple Choice Question 44 Sandhill Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract method prior to 2018. In 2018, it changed to the percentage-of-completion method. The company decided to use the same for income tax purposes. The tax rate enacted is 40%. Income before taxes under both the methods for the past three years appears below. 2016 2017 2018 Completed contract $490000 $324000 $158000 Percentage-of-completion 790000 407000 310000 What amount will be...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT