Prepare journal entries to record tasha income tax

Assignment Help Accounting Basics
Reference no: EM13135897

At the end of the prior year, Tasha Inc. had a deferred tax asset of $21,000,000 attributable to its only timing difference, a temporary difference of $48,000,000 in a liability for estimated expenses. At that time a valuation allowance of $3,000,000 was established. At the end of the current year, the temporary difference is $47,000,000, and Tasha determines that the balance in the valuation account should now be $4,000,000. Taxable income is $18,000,000 and the tax rate is 35% for all years.

Prepare journal entries to record Tasha's income tax expense for the current year. Show well-labeled supporting computations for the income tax payable, the valuation allowance, and the change in the deferred tax asset account.

Reference no: EM13135897

Questions Cloud

Indicate the source of the data for crediting work : Present a list of the three controlling accounts used in the general ledger to record the inventories and, in each case, indicate the related subsidiary ledger.
What is the critical value for test grade results : fourth group was divided into small discussion groups. A high of 10 was possible. A sample of five tests was selected from each group. The test grade results were: At the 0.01 level, what is the critical value?
What are the concentrations of ni, so4 and k : solution of 116 mL of .180 m of KOH is mixed with 290 mL of .190 m NiSO4. What are the concentrations of Ni, SO4 and K that remain
Percentage-of-completion method of revenue recognition : Assume the percentage-of-completion method of revenue recognition is used on a long term construciton contract. Under this method, revenues that are earned but unbilled at the balance sheet date should be disclosed
Prepare journal entries to record tasha income tax : Prepare journal entries to record Tasha's income tax expense for the current year. Show well-labeled supporting computations for the income tax payable, the valuation allowance, and the change in the deferred tax asset account.
Prepare and test appropriate set of hypotheses : Formulate and test an appropriate set of hypotheses to determine if the machine can be qualified. Use a = 0.05. Find the P-value.
Bill of rights and english bill of rights 1689 : Describe in detail the similarities and differences between these two documents. In light of the recent national security legislation passed by Congress, i.e. the Patriot Act, do you believe our civil liberties have been compromised? Explain the re..
Prepare the appropriate journal entry for brogan : Prepare the appropriate journal entry for Brogan to record the income tax provision for the current year. Show well-labeled supporting computations.
Appropriate journal entry to record compensation : Prepare the appropriate journal entry to record compensation expense on December 31, 2011. Prepare the appropriate journal entry to record the lifting of restrictions on December 31,2011

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a production budget

They also have a policy of maintaining a raw material inventory at the end of each month equal to 20% of the pounds needed for the following month's production. There were 3,920 pounds of raw material on hand at Dec. 31, 2010, For the first quarter o..

  Determine the unemployment taxes

During 2012, Jeff Smallwood worked for two different employers. Until May, he worked for Rowland Construction Company in Cincinnati, Ohio, and earned $22,000. The state unemployment rate for Rowland is 4.6%.

  Prepare an income statement for michaels company

Michaels Company segments its income statement into its East and West Divisions. The company's overall sales, contribution margin ratio, and net operating income are $620,000, 57%, and $57,000, respectively.

  Determine the selling price of the bonds

At the time of issuance, the market interest rate for similar financial instruments is 10%. Instructions: As the controller of the company, determine the selling price of the bonds.

  Cash flows from operating-investing and financing activities

The following information is available from Gray Co.'s accounting records for the year ended December 31, 2010 (amounts in million):

  Journalize prouncer march payroll-related liabilities

Prepare the necessary March 31 journal entry to record wages expense and wages payable. Assume that wages earned during March will be paid during April and prepare the entry to record the company's payroll tax expense.

  Calculate the amount of the accumulated earnings tax

Cypress Corporation has regular taxable income of $170,000 (assume annual gross receipts are greater than $5 million) and regular tax liability of $49,550 for 2010.

  What amount must niven expense as organizational costs

Niven Co., a developmental stage enterprise, incurred the following costs during its first year of operations:Legal fees for incorporation and other related matters $55,000Underwriters fees for initial stock offering 40,000Exploration costs and pu..

  Determine heather agi

If Heather's AGI is $100,000 before considering the effects of the fire, determine her itemized deduction as a result of the fire. Also determine Heather's AGI.

  How medicare and medicaid have affected cost-setting

When Medicare and Medicaid were created, reimbursement of services changed. These entities comprised a very large portion of a health care provider's business. Explain how Medicare and Medicaid have affected cost-setting for a health care organiza..

  Describing valuation issues

You believe that the market has changed so much that valuation of the underlying asset cannot be based on past performance. What rules and regulations would guide the actions that you would take? What actions would you take, and why?

  Company total contribution margins

Determine which expenses are mixed and, by use of the high low method, seperate each mixed expense into its variable and fixed components. state the cost formula for each mixed expense.

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