Rent is recognized as income in the period earned

Assignment Help Financial Accounting

Reference no: EM13777008

In 2013, Ryan Management collected rent revenue for 2014 tenant occupancy. For financial reporting, the rent is recognized as income in the period earned, but for income tax reporting it is taxed when collected. The unearned portion of the rent collected in 2013 was $70 million and $60 million at the end of 2014. Taxable income is $230 million. No temporary differences existed at the beginning of the year, and the tax rate is 40%

Prepare the appropriate journal entry to record income taxes for 2014.

Reference no: EM13777008

Questions Cloud

Borrow to pay the supplier within the discount period : H Company needs to pay a supplier's invoice of $60,000 and wants to take a cash discount of 2/10, net 40. The firm can borrow the money for 30 days at 11% per annum. Assume a 360 day year. What is the amount H Company must borrow to pay the supplier..

Influence of systems errors and human factors errors : Describe how patients and patients' families can be involved in addressing this issue.

Assigned receivables and remits those collections : On October 1, 2014, Gator Inc assigns $1,600,000 of its accounts receivable to American Bank as collateral for a $1,200,000 loan. The bank assesses a finance charge of 2% of the receivables assigned and interest on the note of 7%. On December 31, 201..

Important to understand employees : Why do individuals resist some changes but not others? Why is it important to understand employees' reasons for resistance? How can you ensure communication to these employees?

Rent is recognized as income in the period earned : In 2013, Ryan Management collected rent revenue for 2014 tenant occupancy. For financial reporting, the rent is recognized as income in the period earned, but for income tax reporting it is taxed when collected. The unearned portion of the rent colle..

Marketing communications memo : Select one of the following scenarios, where an organization is creating an integrated marketing communications plan to increase its customer base, as the basis for your memo:

What constitutional issues are involved in the scenario : What constitutional issues are involved in the scenario that dictates what you can and cannot do related to the evidence of other criminal activity outside the scope of the original wiretap order? Explain

Finance charge on amount of factored accounts receivable : On April 1 2015 Smith Inc factored 200,000 of accounts receivable to Cameron Factors Inc on a with recourse basis. Cameron assesses a 2% finance charge on the amount of the factored accounts receivable and retains an amount equal to 6% of the factore..

Marketing research and promotional message : Select one of the following consumer groups: teenagers, Baby Boomers, females, or minorities. Prepare a 700- to 1,050-word paper in which you analyze different facets of your group.

User Account

All Pages