HW7
#1
In
2012
, Amirante Corporation had pretax financial income of $177,200 and taxable income of $130,000. 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, 2012.
$
#2
Oxford Corporation began operations in 2012 and reported pretax financial income of $227,500 for the year. Oxford’s tax depreciation exceeded its book depreciation by $41,400. Oxford’s tax rate for 2012 and years thereafter is
30%
. In its December 31, 2012 balance sheet, what amount of deferred tax liability should be reported?
$
#3
At December 31, 2012, Percheron Inc. had a deferred tax asset of $32,120. At December 31, 2013, the deferred tax asset is $57,570. The corporation’s 2013 current tax expense is $63,630. What amount should Percheron report as total 2013 tax expense?
$
#4
Conlin Corporation had the following tax information
Year |
Taxable Income |
Tax Rate |
Taxes Paid |
|
2010 |
$300,000 |
35% |
$105,000 |
|
2011 |
$325,000 |
30% |
$97,500 |
|
2012 |
$400,000 |
$120,000 |
In 2013 Conlin suffered a net operating loss of $460,100, which it elected to carry back. The 2013 enacted tax rate is 29%. Prepare Conlin’s entry to record the effect of the loss carryback.
Description/Account |
Debit |
Credit |
|||
#5
Rode Inc. incurred a net operating loss of $580,100 in 2012. Combined income for 2010 and 2011 was $396,100. The tax rate for all years is 40%. Rode elects the carryback option. Prepare the journal entries to record the benefits of the loss carryback and the loss carryforward.
(To record carryback) |
(To record carryforward) |