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soldi70 [24.7K]
3 years ago
11

In 2018, Ryan Management collected rent revenue for 2019 tenant occupancy. For financial reporting, the rent is recorded as defe

rred revenue and then recognized as income in the period tenants occupy rental property, but for income tax reporting it is taxed when collected. The deferred portion of the rent collected in 2018 was $40 million. Taxable income is $120 million. No temporary differences existed at the beginning of the year, and the tax rate is 30%. Suppose the deferred portion of the rent collected was $30 million at the end of 2019. Taxable income is $140 million.
Prepare the appropriate journal entry to record income taxes.
Business
1 answer:
Tema [17]3 years ago
6 0

Answer:

The Journal entries are as follows:

(i) In 2018,

Income Tax Expense A/c                      Dr. $24

Deferred Tax Assets A/c ($40 × 30%)  Dr. $12

To Income Tax Payable ($120 × 30%)                        $36

(Being income tax and deferred tax recorded for 2018)

(ii) In 2019,

Income Tax Expense A/c                         Dr.  $45

To Income Tax Payable ($140 × 30%)                          $42

To Deferred Tax Assets ($10 × 30%)                          $3

(Being income tax and deferred tax recorded for 2019)

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The correct answer is B. Accounting firms are prohibited from providing many types of consulting services to the companies they audit.

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The main reason for this policy is that it does not allow conflicts of interest to arise that eventually produce widely known cases of fraud, such as those presented at the Enron and Worldcom companies.

The Enron case broke out in the U.S. when that energy giant announced what was once the biggest bankruptcy in the history of the country, with a debt of 31,000 million dollars, something overcome a few months later by the collapse of another colossus, WorldCom.

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3 years ago
Throughout the course of your life, you have converted some of your cash on hand to certificates of deposit and bonds. You also
Serjik [45]

Answer:

intangible property

Explanation:

Intangible property can be defied as property that doesn't have any physical attributes that give them value. For example, a car is a tangible since you can drive it around, but a certificate of deposit is just a piece of paper (or even a computer code) and nothing else. The same applies to bonds and stocks, you know they are valuable but their value is not provided by their physical characteristics.

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3 years ago
Red Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company's assets in tha
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Answer:

b. Disclosed and accued as a liability

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Expropriation occurs when the government or an authority takes property from its owner to use it publicly.

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3 years ago
What is one difficulty a salesperson may face when closing a sale?
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The customer changing their mind or the customer not having enough money
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2 years ago
Bear tracks, inc., has current assets of $2,180, net fixed assets of $9,400, current liabilities of $1,355, and long-term debt o
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Stockholders equity = $6,235

(b) Working capital = Current assets - Current liabilities

Working Capital = 2180-1355

Working Capital = $825

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3 years ago
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