Question

Ivanhoe Company deducts insurance expense of $216000 for tax purposes in 2021, but the expense is...

Ivanhoe Company deducts insurance expense of $216000 for tax purposes in 2021, but the expense is not yet recognized for accounting purposes. In 2022, 2023, and 2024, no insurance expense will be deducted for tax purposes, but $72000 of insurance expense will be reported for accounting purposes in each of these years. Ivanhoe Company has a tax rate of 20% and income taxes payable of $184000 at the end of 2021. There were no deferred taxes at the beginning of 2021.

What is the amount of the deferred tax liability at the end of 2021?

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
Paige Company deducts insurance expense of $105,000 for tax purposes in 2018, but the expense is...
Paige Company deducts insurance expense of $105,000 for tax purposes in 2018, but the expense is not yet recognized for accounting purposes. In 2019, 2020 & 2021, no insurance expense will be deducted for tax purposes, but $35,000 of insurance expense will be reported for accounting purposes on each of these years. Paige Company has a tax rate of 40% and income tax payable of $90,000 at the end of 2018. There were no deferred taxes at the beginning of...
Use the information to answer all parts. Lyons Company deducts insurance expense of $210,000 for tax...
Use the information to answer all parts. Lyons Company deducts insurance expense of $210,000 for tax purposes in 2018, but the expense is not yet recognized for accounting purposes. In 2019, 2020, and 2021, no insurance expense will be deducted for tax purposes, but $70,000 of insurance expense will be reported for accounting purposes in each of these years. Lyons Company has a tax rate of 40% and income taxes payable of $180,000 at the end of 2018. There were...
Ayres Services acquired an asset for $136 million in 2021. The asset is depreciated for financial...
Ayres Services acquired an asset for $136 million in 2021. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset’s cost is depreciated by MACRS. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022, 2023, and 2024 are as follows: ($ in millions) 2021 2022 2023 2024 Pretax accounting income $ 365 $ 385 $ 400 $ 435...
Case Development began operations in December 2021. When property is sold on an installment basis, Case...
Case Development began operations in December 2021. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2021 installment income was $708,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2022–2024 are as follows: 2022 $ 200,000 20 % 2023 284,000 25 2024 224,000 25 Case also had product...
Ayres Services acquired an asset for $64 million in 2021. The asset is depreciated for financial...
Ayres Services acquired an asset for $64 million in 2021. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). Ayers deducted 100% of the asset's cost for income tax reporting in 2021. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022, 2023, and 2024 are as follows: ($ in millions) 2021 2022 2023 2024 Pretax accounting income $ 360 $ 380 $...
The following information is available for the first four years of operations for Zhao Company:            ...
The following information is available for the first four years of operations for Zhao Company:                         Year                            Taxable Income                                 Tax Rate 2020                                       $650,000                                                        19% 2021                                       725,000                                                          21% 2022                                       855,000                                                          21% 2023                                       862,000                                                          21% On January 1, 2020 heavy equipment costing $1,200,000 was purchased. The equipment had a life of 4 years and no salvage value. The straight-line method of depreciation is used for book[1]...
At the end of 2019, Culver Company has $182,000 of cumulative temporary differences that will result...
At the end of 2019, Culver Company has $182,000 of cumulative temporary differences that will result in reporting the following future taxable amounts. 2020 $60,200 2021 51,500 2022 40,900 2023 29,400 $182,000 Tax rates enacted as of the beginning of 2018 are: 2018 and 2019 40 % 2020 and 2021 30 % 2022 and later 25 % Culver’s taxable income for 2019 is $306,200. Taxable income is expected in all future years. (a) Prepare the journal entry for Culver to...
Carla Company has the following two temporary differences between its income tax expense and income taxes...
Carla Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $864,000 $949,000 $920,000 Excess depreciation expense on tax return (30,800 ) (41,000 ) (9,600 ) Excess warranty expense in financial income 20,900 10,500 8,300 Taxable income $854,100 $918,500 $918,700 The income tax rate for all years is 20%. Assuming there were no temporary differences prior to 2020, prepare the journal entry to record income tax expense, deferred...
For the current year, Eastern Atlantic Company reported income tax expense of $21,000. Income taxes payable...
For the current year, Eastern Atlantic Company reported income tax expense of $21,000. Income taxes payable at the end of the prior year were $19,000 and at the end of the current year were $20,000. The deferred tax liability classified as noncurrent that resulted from the use of MACRS for tax purposes and straight-line depreciation for financial reporting purposes increased from $21,000 at the beginning of the current year to $23,000 at the end of the current year. How much...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT