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nlexa [21]
2 years ago
8

Typical Corp. reported a deferred tax liability of $6,000,000 for the year ended December 31, 2017, when the tax rate was 40%. T

he deferred tax liability was related to a temporary difference of $15,000,000 caused by an installment sale in 2017. The temporary difference is expected to reverse in 2019 when the income deferred from taxation will become taxable. There are no other temporary differences. Assume a new tax law passed in 2018 and the tax rate, which will remain at 40% through December 31, 2018, will become 48% for tax years beginning after December 31, 2018. Pretax accounting income and taxable income for the year 2018 is $30,000,000.
Required:
Prepare a compound journal entry to record Typical's income tax expense for the year 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
Alex_Xolod [135]2 years ago
6 0

Answer:

Income tax expense (Balancing figure) $13,200,000  

          To Deferred tax liability (8% × $15,000,000)  $1,200,000

          To Income tax payable ($30,000,000 × 40%)  $12,000,000

(Being the income tax expense is recorded)

Explanation:

The compound journal entry is shown below:

Income tax expense (Balancing figure) $13,200,000  

          To Deferred tax liability (8% × $15,000,000)  $1,200,000

          To Income tax payable ($30,000,000 × 40%)  $12,000,000

(Being the income tax expense is recorded)

For recording this, we debited the income tax expense as it increased the expenses and at the same time it also increased the liabilities i.e deferred tax liability and income tax payable so it would be credited

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frez [133]

Answer:

Letter D is correct!

Explanation:

The letter D is correct because deep sea fishing is a resource that thousands of people have access to and even depend on for their survival. What fits this activity as a commonly owned resource 1, which are natural or artificial activities where the ability to exclude users is not remote. This becomes a problem as there are no resource constraints for each user, ie in the case of deep sea fishing, when a user fishes a fish, it is not available for the other to fish, which would lead to conflicts between management of such activities, so it is necessary to classify as a private activity and then allocate policies to adapt better management to all users.

7 0
3 years ago
What are two kinds of open-ended credit?
STALIN [3.7K]

Answer:

good credit bad ccredit

Explanation:

3 0
3 years ago
A truck that cost $36,000 and on which $30,000 of accumulated depreciation has been recorded was disposed of for $5,000 cash. th
Zielflug [23.3K]
Hi there
First find the book value of the truck
Book value=
Cost-accumulated depreciation
36,000−30,000
=6,000

disposed of for $5,000 cash
Book value 6000
So the answer is
Loss of 1000 (5000-6000)

Good luck!
7 0
2 years ago
The amount of money deposited 25 years ago at 5% interest that would now provide a perpetual payment of $15,000 per year is clos
Mademuasel [1]
The amount of money needed now to begin the perpetual payments is
P = A/I =15,000÷0.05=300,000

The amount that would need to have been deposited 25 years ago is
P=A÷(1+r)^t
P=300,000÷(1+0.05)^(25)
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6 0
3 years ago
Which best describes the main role of the three major credit reporting agencies?.
kaheart [24]

The best three main roles of major credit reporting agencies are:

  • Compile consumer credit
  • Loan information and
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<h3>What is a credit reporting agency?</h3>

A credit reporting agency is a company that keeps track of people's and companies' credit histories. They get information from creditors and other sources, which they put into a credit report, which incorporates a credit score when it's released.

The best three main roles of major credit reporting agencies are:

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Learn more about credit reporting agencies here:

brainly.com/question/9913263

3 0
2 years ago
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