1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Masja [62]
3 years ago
11

The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscrip

tions being reported for tax purposes in the year received, but reported in the income statement in later years when the performance obligation is satisfied. The income tax rate is 25% each year. Times-Roman anticipates profitable operations in the future.
Business
1 answer:
Aleks04 [339]3 years ago
7 0

Question Completion:

Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in 000s) Pretax accounting income Taxable income 2018 2019 2020 S340 $320 $310 380 330 350

Required:

1. What is the balance sheet account for which a temporary difference is created by this situation?

2. For each year, indicate the cumulative amount of the temporary difference at year-end. (Enter your answers in thousands.)

3. Determine the balance in the related deferred tax account at the end of each year. Is it a deferred tax asset or a deferred tax liability? (Enter your answers in thousands.)

Answer:

Times-Roman Publishing Company

1. The balance sheet account for which a temporary difference is created by this situation is the Deferred Subscription Revenue.

2. Cumulative amount of the temporary difference at year-end:

December 31, ($ in 000s)               2018    2019    2020

Cumulative Temporary Difference $40      $50     $90

3. The balance in the related deferred tax account for each year:

December 31, ($ in 000s)               2018    2019    2020

Deferred Tax Asset (Liability)          $10      $2.5     $10

They are all deferred tax assets.

Explanation:

a) Data and Calculations:

December 31, ($ in 000s)               2018    2019    2020

Pretax accounting income             $340    $320    $310

Taxable income                                380      330      350

Temporary Difference                     $40       $10     $40

Cumulative Temporary Difference $40      $50     $90

Deferred Tax Asset (Liability)          $10      $2.5     $10

a) A deferred tax asset arises from the overpayment or advance payment of taxes as a result of the temporary differences between the accounting income and the taxable income.  On the other hand, a deferred tax liability arises from the underpayment of taxes as a result of the temporary differences between accounting income and taxable income.

You might be interested in
Planning involves ________.
kobusy [5.1K]

Setting goals and objectives is a part of planning.

Planning includes both the process of developing a plan and its accurate and timely execution.

Planning may be extremely helpful in avoiding mistakes and seeing possibilities. Good planning demonstrates management's familiarity with the company and their consideration of changes in "products," management, finance, and—perhaps most importantly—the external environment, which includes markets, competitors, users, and regulations. Planning aids in future prediction, future visibility, and the construction of a link between the present and this future.

To know more about planning.

brainly.com/question/25453419

#SPJ4

3 0
1 year ago
All _____________must become part of the federal reserve system.
grin007 [14]

All  <u>national banks</u> become part of the federal reserve system.

<h3>What is federal reserve system?</h3>

Federal reserve system is a financial institution that is in charge of regulating and controlling  money in circulation so as create a stable economy that will help to prevent of financial crisis.

National banks are also known as commercial bank and this commercial banks are under  central bank supervision.

Therefore all  <u>national banks</u> become part of the federal reserve system

Learn more about Federal reserve system here:brainly.com/question/1997750

#SPJ1

7 0
1 year ago
What are the two basic parts of a management plan?
weqwewe [10]

Answer: banks statements and break down of property structures.

6 0
3 years ago
A ___________ plan can help you identify steps needed to restore a failed system. business continuity disaster recovery risk man
Alex777 [14]

Answer:

Disaster recovery plan

Explanation:

Disaster recovery plan (DRP), it is a plan or approach which is structured as well as documented, states how the organization or business could resume work after the unplanned incident happen.

It is the vital part of the business as depend on the functioning of IT, it aims to resolve the loss of data and also recover the system functionality so that the could perform well after incident.

So, DRP, could help in recognizing the steps required to restore the failed system in the business.

7 0
3 years ago
Brownley Company has two service departments and two operating (production) departments. The Payroll Department services all thr
Fittoniya [83]

Answer:

d. $29,580.

Explanation:

Note: The data in the question are merged together and they are first sorted and separated as given in the attached file before the question is answered.

Cost individually incurred by Maintenance = $25,500

Share of Payroll Department cost = $20,400 * (15/75) = $4,080

Total Maintenance Cost = $25,500 + $4,080 = $29,580.

Therefore, he total cost of operating the Maintenance Department for the current period is d. $29,580.

Download pdf
7 0
3 years ago
Other questions:
  • What does the federal provision for "incidental uses and disclosures" mean? Accidental uses and disclosures are not subject to p
    15·1 answer
  • One basic difference between partnership and agency law is that: a. in a partnership, partners are not deemed to be agents of th
    11·1 answer
  • Where could an identity thief access your personal information? AWhile on public wifi at your neighborhood coffeeshop. BFrom sto
    9·1 answer
  • Why did the natural environment receive so much attention under new deal programs, and with what result?
    15·1 answer
  • Blossom Company reported the following selected information at March 31 Total current assets Total assets Total current liabilit
    8·1 answer
  • Suppose Lisa starts driving for Uber as a part-time job to supplement her income as a home-based web designer. When working as a
    12·1 answer
  • What are two ways to begin setting up a recurring transaction in quick books online
    15·1 answer
  • The following selected transactions relate to liabilities of Interstate Farm Implements for December of 2018. Interstate’s fisca
    10·1 answer
  • the board of directors of kate's company recently hired an independent firm to review the state of the organization's security c
    6·1 answer
  • chen is looking for information for a speech about starting your own business. what is the best example of a periodical chen mig
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!