User Account

All Pages

Taxable income

Assignment Help Taxation
Reference no: EM13880317

1.At the end of 2012, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book tax difference of $75 million in a liability for estimated expenses. At the end of 2013, the temporary difference is $70 million. Payne has no other temporary differences. Taxable income for 2013 is $180 million and the tax rate is 40%. Payne has a valuation allowance of $10 million for the deferred tax asset at the beginning of 2013.

Required:
1. Prepare the journal entry(s) to record Payne's income taxes for 2013, assuming it is more likely than not that the deferred tax asset will be realized.
2. Prepare the journal entry(s) to record Payne's income taxes for 2013, assuming it is more likely than not that one half of the deferred tax asset will ultimately be realized.

Reference no: EM13880317

Questions Cloud

Prepare the journal entry to record income taxes : 1.In 2013, DFS Medical Supply collected rent revenue for 2014 tenant occupancy.
Discuss ab electrolux''s ability to develop global initiative : 1. Discuss AB Electrolux's ability to develop global initiatives to reduce costs and increase the speed and precision of product development 2. How can AB Electrolux compete with local Chinese consumer manufacturers?
Communicate with patients remotely : Your healthcare organization is considering using e-mail for patient care communication. What would be the advantages and disadvantages of using this form of communication for patient care? What would you advise the organization to do to protect the ..
Describe three tactics for load smoothing in mrp : Why will the POQ almost always outperform the EOQ as an MRP lot-sizing technique? Describe three tactics for load smoothing in MRP
Taxable income : 1.At the end of 2012, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book tax difference of $75 million in a liability for estimated expenses.
Could the joint venture profitably pursue a single program : Given its vast financial resources, firm A is risk neutral. Should firm A undertake the $200 million R&D effort?
Determining the condensation of the steam : An air heater for an industrial application consists of an insulated, concentric tube annulus, for which air flows through a thin-walled inner tube. Saturated steam flows through the outer annulus, and condensation of the steam maintains a uniform..
Apply knowledge of the relevant australian tax laws : Analyze and then advice ABC of its FBT consequences arising out of the above information, including calculation of any FBT liability, for the year ending 31 March 2015. Assume that ABC would be entitled to input tax credits in relation to any GST-..
Addressed using qualitative research methods : The reading, "Unauthorized Fun at Work (Goofing Off): Predictors and Implications" presents an application of quantitative research methodology. Discuss whether or not quantitative research methodology is appropriate for this study. How might this re..

Reviews

Write a Review

Taxation Questions & Answers

  Low-interest loan for the company from the city council

Suzie applies for and obtains a $30,000 low-interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 6% annu..

  What is lockhart''s built-in gains tax in 2013

During 2013, Lockhart sold all of the inventory it owned at the beginning of the year for $250,000. What is its built-in gains tax in 2013?  Be sure to show your work.

  Determine the income tax savings in the current year

Determine the income tax savings in the current year for the business and for them personally if they form the business as a partnership, S corporation, or C corporation.

  Overview of the income tax system

An Overview of the Income Tax System and Basic Income Tax Concepts

  Compute taxpayer realized gain recognized gain

Compute Taxpayer's realized gain, recognized gain

  Luren owns a condomium in each of the given alternative

lauren owns a condomium. in each of the following alternative situations determine whether the condominium should be

  Prepare an income tax return for the frosts for 2013

Prepare an income tax return for the Frosts for 2013 - examine the bullets on requirements to add that may pertain to these paragraphs.

  Deferred tax asset and deferred tax liability amounts

orning Howell reported taxable income in 2013 of $120 million.

  How government intervention is a type of implicit taxation

Why does nearly every purchase you make provide you with consumer surplus and what does this imply regarding trades of 'equal value - Explain how government intervention is a type of implicit taxation.

  In 2009 micah johnson ssn 277-33-7263 incurs the following

in 2009 micah johnson ssn 277-33-7263 incurs the following unreimbursement employee business expensesairplane and taxi

  Compute janice morgans 2014 federal income tax payable

Compute Janice Morgans 2014 Federal income tax payable (or refund due). If you use tax forms for your computations, you will need Forms 1040 and 4562 and Schedules A, B, and C.

  Should the u.s. convert to a zero personal income tax

Analyze the way in which the two (2) countries that you have researched provide services and benefits to its citizens without collecting personal income taxes.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd