### Journal entry to record southern tax expense

Assignment Help Accounting Basics
##### Reference no: EM13134085

Several years ago, Southern Corporation purchased a fixed asset for \$20 million. At 12-31-09, the carrying value (cost minus accumulated depreciation for financial reporting purposes) of the asset was \$17 million and its tax basis (cost minus accumulated depreciation for tax purposes) was \$12 million. On 12-31-10, the carrying value was \$16 million and the tax basis was \$9 million. There were no other temporary differences besides depreciation. Southern's pretax financial income was \$25 million including \$1 million in municipal bond interest. Southern is subject to a 20% tax rate.

(a) Prepare the journal entry to record Southern's tax expense for 2010.

(b) Calculate Southern's net after tax income for 2010.

#### Questions Cloud

 What is the final temperature : A 47.0 mL sample of gas in a cylinder is warmed from 28 degrees Celsius to 91 degrees Celsius. What is the final temperature? Slant height of isosceles triangle : A ski chalet roof is isosceles triangle and has a vertical angle of 36 degrees. Width of base is 14 m. What is the slant height of roof? What is conclusion based on the p-value : Ccompute the test statistic, and at 95% confidence, test the hypotheses. What is the p-value associated with the sample results? What is your conclusion based on the p-value? Information about right triangle : For the right triangle, find the side length x. Round answer to nearest tenth. Journal entry to record southern tax expense : (a) Prepare the journal entry to record Southern's tax expense for 2010. (b) Calculate Southern's net after tax income for 2010. Find descriptive statistics-describe characteristics sample : Choose and compute the appropriate descriptive statistics to describe characteristics of the sample under study (such as sex distribution, age, and ethnicity). What is the pressure : What is the pressure in a 10.0 L cylinder filled with 0.470 mol of nitrogen gas at a temperature of 329 K ? Side length of right triangle : Find the side length for a right triangle. Round answer to nearest tenth. Length of the side of triangle : For the following right triangle, find the side length x. Round the answer to the nearest tenth.

### Write a Review

#### Determining taxable income rules

In 2012, Warren sold his personal use automobile for a loss of \$9,000. He also sold a personal coin collection for a gain of \$10,000. As result of these sales, \$1,000 is subject to income tax.

#### Gain or loss from disposition of the real estate

Straight-line depreciation of \$162,000 had been taken on the building. What is the amount and initial character of the gain or loss from disposition of the real estate? Is any of the gain unrecaptured § 1250 (25%) gain?

#### Accounting for uncollectible accounts-allowance method

Open the Allowance for uncollectible accounts T-account, and post entries affecting that account. Keep a running balance. Show how Mountain Terrace Medical Center should report net accounts receivable on its December 31, 2012 balance sheet. Use the ..

#### Problem related to molding department

The Molding Department of Boswell Company has the following production data: beginning work process 30,000 units (60% complete), started into production 510,000 units, completed and transferred out 480,000 units, and ending work in process 60,000 ..

#### What will the cost records for the year show

Houghton Company uses a predetermined overhead rate based on direct labor hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be \$200,000 and direct labor hours would be 2..

#### Weighted average shares outstanding

The common stock equivalents added to the company's weighted average shares outstanding used for basic earnings per share was computed using the treasury stock methods.

#### Temporary or permanent book-tax differences

Determine Rogene's taxable income for the current year. Identify any temporary or permanent book-tax differences.

#### Technical and accounting specific language

Prepare the report using highly technical and accounting specific language to show that you are qualified to give the presentation.

#### Internal documentation and external documentation

What is the difference between internal documentation and external documentation? Examples? Which type is considered more reliable?

#### Variable costing-absorption costing

You are the vice president of operations for a small manufacturing company that uses the absorptive method of accounting for fixed manufacturing overhead, and you are approaching the end of the year.

#### Budgeted sales for the first three months

Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are \$250,000, \$320,000, and \$410,000, respectively, for September, October, and November.

#### Compute the overhead controllable variance

Earth Company expects to operate at 86% of its productive capacity of 52,000 units per month. At this planned level, the company expects to use 26,832 standard hours of direct labor.