Question

Cross Company reported the following results for the year ended December 31, 2015, its first year...

Cross Company reported the following results for the year ended December 31, 2015, its first year of operations:

                                                                                                    2015     

Income (per books before income taxes)                          $   750,000

Taxable income                                                                      1,200,000

The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2016. What should Cross record as a net deferred tax asset or liability for the year ended December 31, 2015, assuming that the enacted tax rates in effect are 40% in 2015 and 35% in 2016

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
Blue Sky Company reported the following results for the year ended December 31, 2021, its first...
Blue Sky Company reported the following results for the year ended December 31, 2021, its first year of operations: 2021           Income (per books before income taxes) $ 1,500,000           Taxable income    3,200,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2022. What should Blue Sky record as a net deferred tax asset or liability for the year ended December 31, 2021, assuming that the enacted tax rates in...
28) York Company reported the following results for the year ended December 31, 2021, its first...
28) York Company reported the following results for the year ended December 31, 2021, its first year of operations: 2021 Income (per books before income taxes) $ 1,800,000 Taxable income 3,400,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2022. What should York record as a net deferred tax asset or liability for the year ended December 31, 2021, assuming that the enacted tax rates in effect are 30% in...
The following information is available for Abbott Company for the year ended December 31, 2015: •...
The following information is available for Abbott Company for the year ended December 31, 2015: • Pretax financial income, $700,000. • Installment sales revenue, $10,000 (future taxable). $3,000 and $7,000 of this temporary difference (i.e., the installment revenue) will be reversed in 2016 and 2017, respectively. • The tax rates of 2015, 2016, and 2017 are 30%, 25%, and 25%, respectively. Instructions (a) Compute Abbott’s 2015 taxable income. (b) Prepare the journal entry to record income tax expense, deferred income...
The following information pertaining Juniper Corporation is available for the year ended 2015,its first year of...
The following information pertaining Juniper Corporation is available for the year ended 2015,its first year of operations: : Pretax financial income, $200,000. Excess of tax deprecation over book depreciation equals $36,000 in 2015 (future taxable). This temporary difference (i.e., $36,000 depreciation expense) will be reversed as follows: $23,000 in 2016 and $13,000 in 2017. The tax rates of 2015, 2016 and 2017 are 30%, 25%, and 25%, respectively.   Instructions: (a) Compute Juniper’s 2015 taxable income. (b) Prepare a schedule to...
JJJ Corp. reported the following results for calendar 2020, its first year of operations:          Pre-tax...
JJJ Corp. reported the following results for calendar 2020, its first year of operations:          Pre-tax accounting income                                        $250,000          Taxable income                                                                400,000 The difference between accounting income and taxable income is due to a temporary difference, which will reverse in 2021. Assuming that the enacted tax rates in effect are 30% in 2020 and 25% in 2021, what amount should Delaware record as the deferred tax asset or liability for calendar 2020?
Information pertaining Juniper Corporation is available for the year ended 2015, its first year of operations:...
Information pertaining Juniper Corporation is available for the year ended 2015, its first year of operations: : Pretax financial income, $200,000. Excess of tax deprecation over book depreciation equals $36,000 in 2015 (future taxable). This temporary difference (i.e., $36,000 depreciation expense) will be reversed as follows: $23,000 in 2016 and $13,000 in 2017. The tax rates of 2015, 2016 and 2017 are 30%, 25%, and 25%, respectively. Instructions: (a) Compute Juniper’s 2015 taxable income. (b) Prepare a schedule to show...
Shwonson Industries reported a deferred tax asset of $5 million for the year ended December 31,...
Shwonson Industries reported a deferred tax asset of $5 million for the year ended December 31, 2020, related to a temporary difference of $20 million. The tax rate was 25%. The temporary difference is expected to reverse in 2022, at which time the deferred tax asset will reduce taxable income. There are no other temporary differences in 2020–2022. Assume a new tax law is enacted in 2021 that causes the tax rate to charge from 25% to 15% beginning in...
Bronson Industries reported a deferred tax liability of $6.25 million for the year ended December 31,...
Bronson Industries reported a deferred tax liability of $6.25 million for the year ended December 31, 2020, related to a temporary difference of $25 million. The tax rate was 25%. The temporary difference is expected to reverse in 2022 at which time the deferred tax liability will become payable. There are no other temporary differences in 2020–2022. Assume a new tax law is enacted in 2021 that causes the tax rate to change from 25% to 15% beginning in 2022....
Bronson Industries reported a deferred tax liability of $24.0 million for the year ended December 31,...
Bronson Industries reported a deferred tax liability of $24.0 million for the year ended December 31, 2017, related to a temporary difference of $60 million. The tax rate was 40%. The temporary difference is expected to reverse in 2019 at which time the deferred tax liability will become payable. There are no other temporary differences in 2017–2019. Assume a new tax law is enacted in 2018 that causes the tax rate to change from 40% to 30% beginning in 2019....
The following information pertaining Juniper Corporation is available for the year ended 2015,its first year of...
The following information pertaining Juniper Corporation is available for the year ended 2015,its first year of operations: : Pretax financial income, $200,000. Excess of tax deprecation over book depreciation equals $36,000 in 2015 (future taxable). This temporary difference (i.e., $36,000 depreciation expense) will be reversed as follows: $23,000 in 2016 and $13,000 in 2017. The tax rates of 2015, 2016 and 2017 are 30%, 25%, and 25%, respectively.   Instructions: Compute Juniper’s 2015 taxable income. Pretax accounting income                               $ 200,000 Less: additional...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT