Income amounts before depreciation expense

Assignment Help Accounting Basics
Reference no: EM131003581

Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2011 through 2014 except for differences in depreciation on an operational asset. The asset cost $120,000 and is depreciated for income tax purposes in the following amounts:
The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes.
Income amounts before depreciation expense and income taxes for each of the four years were as follows.
Assume the average and marginal income tax rate for 2011 and 2012 was 30%; however, during 2012 tax legislation was passed to raise the tax rate to 40% beginning in 2013. The 40% rate remained in effect through the years 2013 and 2014. Both the accounting and income tax periods end December 31.

Required:

Prepare the journal entries to record income taxes for the years 2011 through 2014.

Reference no: EM131003581

Questions Cloud

Calculate work compressor does on one compression stroke : Using the fact that pressure and volume vary inversely (Boyle's Law), calculate the work the compressor does on one compression stroke.
If the new tax rate had not been enacted : If the new tax rate had not been enacted, what would have been the appropriate balance in the deferred tax liability account at the end of 2012? Why?
How to interpret the shift of steady-state inactivation : How to interpret the shift of steady-state inactivation. Please explain the figures and provide answers to both questions.
Establishing a program to raise revenue through excise taxes : You are selected by the board of Alderman in your hometown to help the lawmakers in establishing a program to raise new revenue through excise taxes. Why would elasticity of demand be important to you in determining the products on which taxes should..
Income amounts before depreciation expense : Assume the average and marginal income tax rate for 2011 and 2012 was 30%; however, during 2012 tax legislation was passed to raise the tax rate to 40% beginning in 2013. The 40% rate remained in effect through the years 2013 and 2014. Both the accou..
Short supply and in response price has risen dramatically : Facts: Partly because some major soy growers have switched to high-priced corn, and partly due to bad weather, world production of soy has been running well below worldwide sales for four years. Soy is now in relatively short supply and in response t..
The nash equilibrium will be : In a simultaneous move game, if both charge the low price (LP) they each earn $5K. If both charge the high price (HP) they each earn $10K. If they charge different prices, the one playing LP earns $15K and the other earns $1K. The Nash Equilibrium wi..
Prepare the year-end journal entries to record income taxes : The enacted tax rate for 2011 and 2012 was 30%, but during 2012 new tax legislation was passed reducing the tax rate to 25% for the years 2013 and beyond.
Compute volume of the solid obtained by rotating the region : For the region bounded by y =2x2, y = 8, 0 ≤ x ≤ 2, please Sketch the region. Use the method of cylindrical shells to find the volume of the solid obtained by rotating the region about the y-axis.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Assume further that p feels that it must earn a 15 return

p company is considering the acquisition of s inc. to assess the amount it might be willing to pay p makes the

  What was finney net income for the year

Finney Company began the year by issuing $20,000 of common stock for cash. The company recorded revenues of $185,000, expenses of $160,000, and paid dividends of $10,000. What was Finney's net income for the year?

  The budgeted beginning cash balance

The desired ending cash balance is $40,000. To attain its desired ending cash balance for December, the company needs to borrow:

  Intel stmicro and francisco partners are going into

intel stmicro and francisco partners are going into business together taking equity shares in the new venture of

  You may use any of the additional resources listed in the

you may use any of the additional resources listed in the drop-down menu above to help you complete this activity but

  Problem regarding the accounting equation

Using the accounting equation, answer each of the following independent questions. 1. Burlin Company starts the year with $100,000 in assets and $80,000 in liabilities. Net income for the year is $25,000, and no dividends are paid. How much is owne..

  The sneed corporation issues 10000 shares of 50 par value

the sneed corporation issues 10000 shares of 50 par value preferred stock for cash at 70 per share. the entry to record

  Linear programming case study

Linear Programming Case Study

  Give all the closing entries required at december

Give all the closing entries required at December 31 for each of the separate cases. Show how the equity section of the balance sheet would appear at December 31 for each case. Show computations.

  Rooney company uses a flexible budget for manufacturing

rooney company uses a flexible budget for manufacturing overhead based on direct labor hours. variable manufacturing

  What would be similar between each organization

What would be similar between each organization?

  Douglas manufacturing company has two production

douglas manufacturing company has two production departments cutting and assembly. july 1 inventories are raw materials

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