Reference no: EM13867543
At the beginning of 2010, Norris Company had a deferred tax liability of $6,400, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting. The income tax rate is 30% for 2009 and 2010, but in 2009, Congress enacted a 40% tax rate for 2011 and future years.The accounting records of the Norris Company show the following pretax items of financial income for 2010: income from continuing operations, $120,000 (revenues of $352,000 and expenses of $232,000); gain on disposal of Division F, $23,000; extraordinary loss, $18,000; loss from operations of discontinued Division F, $10,000; and prior period adjustment, $15,000, due to an error that understated revenue in 2009. All of these items are taxable; however, financial depreciation for 2010 on assets related to continuing operations exceeds tax depreciation by $5,000. The company had a retained earnings balance of $161,000 on January 1, 2010 and declared and paid cash dividends of $32,000 during 2010.
Required:
1. Prepare the income tax journal entry of the Norris Company at the end of 2010.
2. Prepare Norris Company's 2010 income statement.
3. Prepare Norris Company's 2010 statement of retained earnings.
4. Show the related income tax disclosures on the Norris Company's December 31, 2010 balance sheet.
|
Pseudoplastic and a newtonian fluid please
: A Bingham plastic, a dilatant, a pseudoplastic and a Newtonian fluid Please?
|
|
Cold working of metals
: 1. When considerable deformation is required in a metal, what can be done to avoid brittleness or rupture? 2. Are closer dimensional tolerances and better finish advantages of hot forming, or of cold forming? 3. In which type, cold forming or hot for..
|
|
Determine the impact of each of these transactions
: Determine the impact (increase, decrease, or no change) of each of these transactions on the following classifications: 1. Total assets. 2. Total liabilities. 3. Total stockholders equity. 4. Net income
|
|
What percentage of state revenue is accounted by sales tax
: What percentage of the state revenue is accounted for by sales tax and individual income tax? Which category will generate more revenue, corporate taxes or license fees?
|
|
The company had a retained earnings balance
: At the beginning of 2010, Norris Company had a deferred tax liability of $6,400, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting.
|
|
Differences between financial statement & income tax return
: Chris Green, CPA, is auditing Rayne Co.'s 2010 financial statements. For the year ended December 31, 2010, Rayne is applying GAAP for income taxes.
|
|
Develop a chart depicting the information of the results
: One of the most popular candies in the United States is M&M's, which are produced by the Mars Company. Develop a chart depicting this information and write a paragraph summarizing the results.
|
|
Which measurement focus is used in each fund category
: Which measurement focus is used in each fund category?
|
|
Give the journal entry to record the bond issue
: Prepare a bond amortization schedule. Give the journal entry to record the bond issue. Give the journal entries to record the interest payments on December 31, 2015 and 2016. Give the journal entry to record the interest and face value payment on Dec..
|