The company reported pretax operating income

Assignment Help Taxation
Reference no: EM13868771

At the end of 2010, its first year of operations, the Swelland Company reported a pretax operating loss of $32,000 for both financial reporting and income tax purposes. At that time the company had no positive verifiable evidence that it would earn future taxable income. However, due to successful management, the company reported pretax operating income (and taxable income) of $70,000 in 2011. During both years, the income tax rate was 30% and no change had been enacted for future years.

Required:
1. Prepare the income tax journal entries of the Swelland Company at the end of 2010.
2. Prepare the income tax journal entry of the Swelland Company at the end of 2011.
3. Prepare the lower portion of Swelland's 2011 income statement. 

Reference no: EM13868771

Questions Cloud

Forms of transportation : Which agency helps assure that all forms of transportation are operated safely by investigating transportation accidents and developing recommendations for other government agencies and transportation industries regarding transportation safety, tr..
What is the fundamental purpose of the bsc : What is the fundamental purpose of the BSC and how can change agents use this tool in the change process? Has anyone in class used this tool for a change initiative? If so, tell us about it.
Develop a flow chart of the correct process : Develop a flow chart of the correct process that should have been followed. Write a personal reflection on the topic addressing your position and any ethical issues. Also reflect on the role of the Christian employee and discuss key biblical princi..
Explain how nominal dollar exchange rate would be affected : Explain how the nominal dollar/euro exchange rate would be affected (all else equal) by permanent changes in the expected rate of real depreciation of the dollar against the euro.
The company reported pretax operating income : At the end of 2010, its first year of operations, the Swelland Company reported a pretax operating loss of $32,000 for both financial reporting and income tax purposes. At that time the company had no positive verifiable evidence that it would earn f..
What happens to the expected real interest rate : What happens to the expected real interest rate? Explain why the subsequent path of the real exchange rate satis?es the real interest parity condition.
What is the required mens rea in ohio : The mens rea for receiving stolen property varies from state to state. In some states, receivers have to know the goods are stolen. In others, believing the goods are stolen is enough. What is the required mens rea in Ohio
Problem regarding thecapacitor current and capacitor voltage : 1. Simulate the following circuit on PSpice showing the capacitor current and capacitor voltage during the transient phase. Use the following component values in the circuit: L = 1 mH, C = 1.57 μF.
Will international real interest differentials be larger : Recall the evidence that relative PPP seems to hold better over long horizons than short ones. In that case, will international real interest differentials be larger at short than at long maturities?

Reviews

Write a Review

Taxation Questions & Answers

  How could you suggest this issue be resolved

Do you agree or disagree? Why? How could you suggest this issue be resolved?

  Determine which forms are necessary for jackie

Determine which forms are necessary for Jackie O. Parks tax return - Go to the IRS Web site and download the fill-in tax forms that you will need to complete: Form 1040 and the appropriate schedules.

  Questiondetermine whether the following benefits are fringe

questiondetermine whether the following benefits are fringe benefits or exempt fringe benefits and where applicable the

  Income tax project

osalyn uses the Cash Method Of Accounting for Federal Income Tax purposes for her business, ROSALYN'S BOOKSTORE, and the business code for the business for Federal Income Tax purposes

  What is the total amount of risk of accounting loss

What is the total amount of risk of accounting loss related to Butler's trade accounts receivable, and what amount of that risk is off-balance-sheet risk?

  Advise jack and jill of income tax consequences

Advise ABC of its FBT consequences arising out of the above information, including calculation of any FBT liability, for the year ending 31 March 2015. Assume that ABC would be entitled to input tax credits in relation to any GST- inclusive acquis..

  How can multinational firms reduce their tax liabilities

cash management is critical in a multinational firms operations. research and answer the following questionshow can

  Explain the tax treatments

Determine the Hong Kong salaries tax liability of Mr Ma for the year of assessment 2011/12, making the best election where appropriate. Ignore provisional salaries tax and tax reduction or waiver.

  Compute the companys profit margin

Compute the companys profit margin - administrative expenses of $15,000; and income tax expense

  How much does the family save in taxes

They have 2 children (ages 14 and 16) who have no taxable income. If they can legally shift $6,000 in taxable income to each child, how much does the family save in taxes?

  Difference between tax payable and tax effect method

Explain the difference between the 'tax payable' and 'tax effect' methods of accounting for income tax and discuss  the 'balance sheet' approach to accounting for income tax.

  Do you agree with the proponents of the exclusion

Do you agree with the proponents of the exclusion? Why or why not? Are there legal and ethical ramifications that we need to consider? Make sure you back up you discussion with research.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd