Accounting hw7

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

30%

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.

Description/Account

Debit

Credit

(To record carryback)

(To record carryforward)