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Alja [10]
3 years ago
14

24. ABC Corp. has a deferred tax asset account with a balance of $75,000 at the end of 2019 due to a single cumulative temporary

difference of $375,000. At the end of 2020, this same temporary difference has increased to a cumulative amount of $400,000. Taxable income for 2020 is $820,000. The tax rate is 20% for all years. No valuation account related to the deferred tax asset is in existence at the end of 2019. Also assume that it is more likely than not that $25,000 of the deferred tax asset will not be realized. Prepare the journal entries required for 2020 (2 points).
Business
1 answer:
nevsk [136]3 years ago
5 0

Answer:

The journal entries to prepare would be as follows:

                                       Debit              Credit

Deferred tax asset    $5,000

Income tax expense $159,000

           Income tax payable                 $164,000

                               Debit              Credit

Income tax expense $25,000

           Valuation Adjustement           $25,000    

Explanation:

The journal entries to prepare would be as follows:

                                       Debit              Credit

Deferred tax asset    $5,000

Income tax expense $159,000

           Income tax payable                 $164,000

Deferred tax asset=($400,000*20%)-$75,000

Deferred tax asset=$5,000

Income tax payable=$820,000*20%=$164,000

Income tax expense=$164,000-$5,000=$159,000

                                    Debit              Credit

Income tax expense $25,000

           Valuation Adjustement           $25,000      

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Answer:

The price she sold the bond is $1,001.47

Explanation:

The formula for yield return in given as ;

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Making selling price the subject of formula we have this as the abswer

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g Samco signed a 5​-year note payable on January​ 1, 2018​, of $ 475 comma 000. The note requires annual principal payments each
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Answer:

B. a debit to Interest Expense for $ 42 comma 750.

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Explanation:

Payment of Note Payable includes the payment of interest on the outstanding balance and principal amount of the note. In this question it is the first payment of the note payable, so the outstanding balance is the face value of the note, Interest is calculated using this value, A fix payment of $95,000 is also made.

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Journal Entry for first payment

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