Prepare journal entries to record tasha income tax expense

Assignment Help Accounting Basics
Reference no: EM131811762

Question - 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: EM131811762

Questions Cloud

Briefly describe how the bible is related to the topics : Briefly describe how the Bible is related to the topics covered in the course Principles of Accounting
Find expectation of the total number of spots : I roll a random number of dice. If the number of dice rolled has the Poisson (12) distribution, find (and justify your answers).
Discuss what is the entry smith needs to make on december : the market value of Jones stock is $17 per share. What is the entry Smith needs to make on December 31
Percent annual rate of return : Suppose you are committed to owning a $210,000 Ferrari. If you believe your mutual fund can achieve a 13 percent annual rate of return and you want
Prepare journal entries to record tasha income tax expense : Prepare journal entries to record Tasha's income tax expense for the current year. Show well-labeled supporting computations for the income tax payable
What counter-arguments can you think : What counter-arguments can you think of to his argument that first world citizens have a moral obligation to give to the less fortunate?
Consider the concepts of bics and calp : Describe how each one can help students foster an understanding and interest in oral and written language. Cite any sources used.
Discuss discounting the annual winning payment : Winners of the Georgia Lotto drawing are given the choice of receiving the winning amount divided equally over 18 years
Find the total number of persons injured : Suppose the number of accidents in an interval of time has Poisson (?) distribution. suppose that in each accident there are k persons injured with probability.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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