Complete the following statement by filling in the blank with the correct option from the...
Question:
Complete the following statement by filling in the blank with the correct option from the parenthesis.
An income statement that reports current tax expense of $82,400 and deferred tax benefit of $22,300 will report total income tax expense of $_____.
Deferred Tax Benefit:
A decrease in a company's current tax obligation due to transitory discrepancies between an asset or liability's tax base and its financial reporting basis is in accounting as a deferred tax benefit.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerIncome tax expenses are $60,100.
Given information:
Current tax expense = $82,400
Deferred tax benefit = $22,300
Computation of total income tax:
...See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Calculating Corporate Income Taxes by Deferred Tax Benefits
from
Chapter 8 / Lesson 3
3.4K
Explore methods of calculating corporate income taxes by deferred tax benefits. Examine inter-period tax allocation, review the balance sheet approach of ASC 740, view a balance sheet presentation, and see the current period tax expense impact.
Related to this Question
- Which of the following statements is correct? A. Corporate earnings would be more volatile if deferred income taxes were not part of the amount reported for income tax expense. B. A stockholder should want the firm in which she/he has common stock to ha
- Which of the options below would result in a debit to Income Tax Expense of $500,000, a credit to Cash of $475,000, and a credit to Deferred Income Tax Asset of $25,000? a. The business recognizes $475,000 of Tax Expense for the year. b. The business reco
- Determine if the statement describes deferred tax asset or deferred tax liability. Explain why. Rent revenue on the tax return is greater than financial statement rent revenue by $14,000.
- The statement concerning a company's income tax expense that is correct is: A. Income tax expense often differs from the amount of tax calculated by the tax department. B. Income tax expense will be the same as the amount of tax calculated by the tax depa
- Which of the following would not appear on a multiple-step budgeted income statement? a. operating income. b. salaries payable. c. gross profit. d. income tax expense.
- The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following: Income before income tax was $330,000, and income taxes were $50,150, for the current yea
- For the deduction of self-employment taxes, which of the following statements is correct? a- they are taken as an itemized deduction on schedule A. b- they are not deductible. c- they are 80% deductible as for AGI deduction. d- they are 50% deductible
- Which of the following statements is correct with regard to business tax calculation? a. When determining a corporation's taxable income, all of the expense items are 100% deductible. b. Net operating losses can be carried back to the past three years a
- Which of the following produces an incorrect observation? A. The tax shield for NOPAT calculations is subtracted from the total tax expense to determine the tax on operating results. B. A higher NOPAT, will typically result in a higher the return on inv
- Which of the following is a true statement regarding deferred taxes under APB No. 11? A) They were adjusted for tax rate changes. B) They were viewed as deferred credits. C) They resulted in balance sheet taking precedence over the income statement in acc
- Fill in the missing numbers for the following income statement. Sales$688,900 Costs443,800 Depreciation116,400 EBIT$ Taxes (34%) Net income$ Calculate the OCF.
- Additional disclosures are required pertaining to the income tax expense reported on the income statement. What are the needed disclosures?
- Which of the following amounts is NOT deducted in converting Net Income for Tax Purposes to Taxable Income? A. Losses of other years. B. The lifetime capital gains deduction. C. An amount related to the exercise or sale of stock options. D. The excess
- For trading securities, the deferred tax effect should be presented in: a. The income statement. b. Other comprehensive income. c. No need for accounting. d. None of the above.
- Determine if the statement describes deferred tax asset or deferred tax liability. Explain why. Warranty expense on financial statements exceeded warranty expense on tax return by $7000.
- Fill in the blanks to complete Procter & Gamble's Income Statement ($ millions). Procter & Gamble Income Statement For Year Ended June 30, 2011 Sales $ ? Expenses 67,370 Earnings before income tax
- The balance sheet for Nair Corporation provided the following summarized pretax data: Year 2011 Year 2012 Deferred tax liability $365,000 $473,000 The income statement reported tax expense for 2012 in the amount of $590,000. 1. What was the amount of inc
- The following information was available for the year ended December 31, 2016: Earnings before interest and taxes (operating income) $97,500 Interest expense 15,000 Income tax expense 22,500 Net income 60,000 Total assets at year-end 288,000 Total liabilit
- Below you will find an incomplete income statement for the doctor's office of Susan Gonzalez. Required: Fill in the missing dollar amounts to complete the income statement. Susan Gonzalez, MD Income Statement For Year Ended Dec 31 Revenues: Exa
- The balance sheet for Nair Corporation provided the following summarized pretax data: Year 2011 Year 2012 Deferred tax liability $355,000 $463,000 The income statement reported tax expense for 2012 in the amount of $580,000. Required: 1. What was the a
- For its fiscal year ending October 31, 2017, Grouper Corp. reports the following partial data shown below. Income before income taxes $605,000 Income tax expense (15% x $626,000) 93,900 Income from continuing operations 511,100 Loss on discontinued opera
- On December 31, 2017, Sandhill Inc. had a deferred tax asset of $33,000. On December 31, 2018, the deferred tax asset is $56,900. The corporation's 2018 current tax expense is $65,300. What amount should Sandhill report as a total 2018 income tax expense?
- The following information was taken from Chokr Corporation's 2016 income statement: Income before income taxes $1,500,000 Income tax expense Current $564,000 Deferred 36,000 600,000 Net income $
- Inter-period income tax allocation causes: a. tax expense shown on the income statement to equal the amount of income taxes payable for the current year plus or minus the change in the deferred tax asset or liability balances for the year. b. tax expens
- For which of the following accounts would the amount recorded under partial tax allocation be equal to the amount recorded under comprehensive tax allocation? A) Income Tax Liability B) Deferred Tax Liability C) Income Tax Expense D) None of the above
- Which of the following is not a true statement regarding comprehensive income tax allocation? A) Tax allocation is made necessary by the timing differences between when an item reaches the income statement and when it appears on the tax return. B) The dif
- When income tax expense for a period is greater than income tax payable the difference will be reported how and on which financial statement? A. Deferred tax asset and Statement of Cash Flows. B. Deferred tax asset and Balance Sheet. C. Deferred tax liabi
- Which of the following statements is incorrect? a. The AMTI is calculated by modifying the regular tax Taxable Income. b.The AMT is a flat-rate alternative to the regular tax. c. Taxpayers may choose to pay either the regular tax or the AMT. d. Only b
- Which of the following statements is incorrect? a. If the tentative minimum tax exceeds the regular income tax liability, the AMT is $0. b. The exemption amount increases as AMTI increases. c. The AMT tax rate for an individual taxpayer can be as high
- Which of the following provides information about a person's financial condition at a specific point in time? A. Federal tax return B. Balance sheet C. All of these D. Income and expense statement
- At December 31, 2017, Whispering Inc. had a deferred tax asset of $29,000. At December 31, 2018, the deferred tax asset is $53,100. The corporation's 2018 current tax expense is $60,300. What amount should Whispering report as the total 2018 income tax ex
- Which of the following is correct regarding the form for filing the annual Federal income tax return? a. Business Entity Form: LLC; Tax Form: Form 1120S b. Business Entity Form: Sole Proprietorship; Tax Form: Form 1040-Schedule C c. Business Entity Form:
- Below you will find an incomplete income statement for the doctor's office of Susan Diaz. Required: Fill in the missing dollar amounts to complete the income statement. Susan Diaz, MD Income Statement For Year Ended Dec 31 Revenues: Examination
- Select what will be the most correct calculation of retained earnings for next year. (Hint- you can either use your net income to pay dividends or keep it as retained earnings) a- Add next year's gross income to this year's retained earnings. b- Add ne
- Which of the following are included in the summary of significant accounting policies included in the notes to the financial statements? (Select all that apply.) a. supporting calculations for income taxes b. method of depreciation c. items included in ca
- Which of the following statements about the alternative minimum tax is true? A. All of the answers are true. B. Regular taxable income is the starting point for determining AMT. C. Taxpayers must add back the standard deduction amount regardless of whe
- Which of the following statements is incorrect with respect to determining E & P? a. All tax-exempt income should be added back to taxable income. b. Dividends received deductions should be added back to taxable income. c. Charitable contributions in e
- Mark the incorrect answer. Estimated income tax payments: a. Need not be filed if the estimated tax, after subtracting withholding, can reasonably be expected to be more than $1,000. b. May be based
- Which statement below does not represent the taxation of stock option plans? a. Employers do not receive a tax deduction for ISO's. b. Non-qualified stock option plans provide tax benefits to employers. c. Incentive Stock Options (ISO) provide tax benefit
- If the corporation's income tax computed at the end of the year is less than the total of quarterly deposits, the necessary adjustment will result in a A. debit to Income Tax Expense. B. credit to Income Tax Payable. C. debit to Income Tax Refund Receivab
- At December 31, 2017, Pina Inc. had a deferred tax asset of $33,000. At December 31, 2018, the deferred tax asset is $56,900. The corporation's 2018 current tax expense is $65,300. What amount should Pina report as total 2018 income tax expense?
- What are the names and representations of the three subtotals of income and final total of income on the income statement?
- Which of the following are true? A. Deductions are subtracted from gross income to arrive at AGI. B. Exemptions are subtracted from gross income to arrive at AGI. C. Deductions are subtracted from AGI to arrive at taxable income. D. Exemptions are sub
- The balance sheet for Borglum Company at the end of the current fiscal year indicated the following: Income before income tax was $1,500,000 and income taxes were $200,000, for the current year. Cash
- Fill in the missing data for each of the following independent cases. (Ignore income taxes.) (Do not round intermediate calculations.) Sales Revenue Variable Expenses Total Contribution Margin Fixed
- Use the information from the following single-step income statement to prepare a multistep income statement in proper form. Answer:
- Which of the following statements concerning taxation is accurate? A. Only the owners must pay taxes on corporate income. B. Corporations pay federal income taxes but not state income taxes. C. Corporations pay federal and state income taxes. D. Partn
- Which of the following is implied when an accountant signs the preparer's declaration on a federal income tax return? a. The tax return is not misleading based on all information of which the accountant has knowledge. b. The return is prepared in accordan
- Which of the following items is not added back to regular taxable income in computing alternative minimum taxable income? a. Home mortgage interest expense. b. Real property taxes. c. Tax-exempt interest from a private activity bond issued in 2007. d.
- The company reported the following balance sheet information: 2008 2007 Income taxes payable $13,000 $17,000 Deferred income tax liability 100,000 75,000 Total income tax expense for 2008 was $40,000. Compute the amount of cash paid for income taxes i
- The following information was available for the year ended December 31, 2019: Earnings before interest and taxes (operating income) $114,000 Interest expense 28,000 Income tax expense 33,000 Net income 53,000 Total assets at year-end 380,000 Total liabili
- Prepare the entry to record income tax given the following information and show how the related liabilities would be displayed on the balance sheet. Income before tax $100,000 Taxable income $80,000 Corporate income tax rate 40%
- What is a Tax Professional's correct response to a taxpayer who omitted items on an income tax return that was submitted in a previous year? a. Advise the taxpayer promptly of the fact of such omission, and refuse to prepare the current-year return until
- Which of the following statements is false? a. A taxpayer can be charged a penalty for the late payment of taxes if an extension to file was granted. b. The interest charged on the late payment of taxes is deductible on the federal tax return. c. The pena
- (a) What is the difference between taxable and financial income? (b) Why is the tax expense reported on the income statement comprised of current and deferred tax?
- Which of the following statements is not correct? a. The accountant obtains information about wages subject to payroll taxes from the payroll register. b. Most commercial banks are authorized to accept the employee's tax deposits for federal income taxe
- Which one is not correct in the context of tax accounting? a. Corporate income tax is an expense, not a distribution of the profits to the government. b. Deferred tax assets might be resulted from loss carryback. c. Non-taxable expense causes permanent
- At December 31, 2017, Buffalo Inc. had a deferred tax asset of $28,200. At December 31, 2018, the deferred tax asset is $55,400. The corporation's 2018 current tax expense is $63,200. What amount should Buffalo report as total 2018 income tax expense?
- Consider the following simplified financial statements for the Wims Corporation (assuming no income taxes): Income Statement Balance Sheet Sales $38,000 Assets $27,300 Debt $6,700 Costs 32,600 Equity 20,600 Net income $5,400 Total $27,300 Total $27
- If an accountant fails to make an adjusting entry at the end of the accounting period to record expired insurance, the omission will cause A) total revenue to be understated B) total expenses to be understated C) total assets to be understated D) tota
- Tax rates other than the current tax rate may be used to calculate the deferred income tax amount on the balance sheet if: A. the future tax rates have been enacted into law. B. it appears likely that a future tax rate will be less than the current tax ra
- Which of the following would not be considered an expense of a partnership in determining income for the period? (a) Utility expense (b) Income tax expense (c) Expired insurance (d) Rent expense.
- The company FPA has the following income, expense, and loss items for the current vear: Prepare a calculation of taxable income for the following scenarios and indicate the tax form(s) to report the
- The balance sheet for Garcon Inc. at the end of the current fiscal year indicated the following: Bonds payable, 8% (issued in 2006, due in 2026) $5,000,000 Preferred $4 stock, $50 par 2,500,000 Common stock, $10 par 5,000,000 Income before income tax
- Which of the following is a form prepared by the employer listing the wages paid and the federal income and FICA taxes owed for that quarter? a. Form 940 b. Form 941 c. Form 1099 d. Form 8109
- Classify the following item as (a) prepaid expense, (b) unearned revenue, (c) accrued revenue, or (d) accrued expense: Taxes owed but payable in the following period.
- For income tax purposes fraudulent losses may be classified as a. deductions. b. offsets to reportable revenues. c. reductions in retained earnings. d. the first two (2) options are correct. e. All of the above
- At December 31, 2014, Percheron Inc. had a deferred tax asset of $30,000. At December 31, 2015, the deferred tax asset is $59,000. The corporation's 2015 current tax expense is $61,000. What amount should Percheron report as total 2015 income tax expense?
- All of the following are procedures for the computation of deferred income taxes except to: a. identify the types and amounts of existing temporary differences. b. measure the total deferred tax liability for taxable temporary differences. c. measure t
- For disclosing the periodic income tax expense on the income statement, one method advocated by proponents of the net-of-tax method theorize that this method should report: A. income tax expense equal to culvert income tax payable B. only deferred tax a
- Choose the correct answer. Select one: a. Education expenses are deductible on Schedule C even if the education qualifies the taxpayer for a new trade or business. b. Expenses required for education to maintain skills for the taxpayer's current business
- ABC reports income tax expense of $800,000. Income tax payable at the beginning and end of the year are $50,000 and $70,000, respectively. What is the amount of cash paid for income taxes?
- Which of the following would not be considered an expense of a partnership in determining income for the period? a) Utilities expense. b) Income tax expense. c) Expired insurance. d) Rent expense.
- Assume that income tax expense was $150,000, that income tax payable increased by $14,000, and deferred tax liability increased by $9,000. What amount of cash was paid for income taxes?
- Which of the following statements about conversion of income is correct? a. Converting ordinary income into capital gain is a beneficial tax planning strategy. b. Converting capital gain income into ordinary income is a beneficial tax planning strategy.
- Which of the following reports lists each employee's earnings and deductions? a. Current Earnings Report b. Payroll Journal c. Payroll Tax Report d. Tax Liability Report e. None of the above
- The year-end financial statements of Rattlers Tax Services are provided below. RATTLERS TAX SERVICES Income Statement Service revenue $77,500 Expenses: Salaries $46,000 Utilities 8,200 Insuranc
- Wilkins Inc. owned 60% of Motumbo Co. During the current year, Motumbo reported net income of $280,000 but paid a total cash dividend of only $56,000. Required: Assuming an income tax rate of 30%, what amount of Deferred Income Tax Liability arising this
- For year-end 2013, Max Corporation shows a pretax financial income of $3,000,000. For federal income taxes, the following additional info was provided: Gain on an involuntary conversion (within the statutory period): $900,000 Depreciation deducted for tax
- Which one is not correct in the context of tax accounting? (a) Deferred tax liability might have resulted when tax expense on the income statement is less than tax payment based on tax code (b) Non-taxable expense causes permanent differences between pret
- Larkspur Company has the following two temporary differences between its income tax expense and income taxes payable. 2017 Pretax financial income $844,000 Excess depreciation expense on tax return (
- For the current year, accrual-basis Corp. A's books and records reflected the following: Net income per book $104,000 Accrued federal income tax $35,000 Net capital loss $4,000 Tax exempt interest $5,000 Book depreciation in excess of allowance tax deprec
- Under Armour, Inc. reports total tax expense on its income statement for the year ended December 31, 2010, of $40,442 and cash paid for taxes of $38,773. The tax footnote in the company's 10-K filing,
- Income earned but unpaid at the time of a decedent's death is deemed to be income in respect of a decedent (IRD). Which of the following statements concerning IRD is correct? a. The income must be reported on the decedent's final federal income tax retur
- 1. Choose one option within the parentheses. In a period in which a taxable temporary difference reverses, the reversal will cause taxable income to be (less than / great than) pretax financial income
- The following is a partial year-end adjusted trial balance. Income tax expense has not yet been recorded. The income tax rate is 40%. a. Determine the operating income loss. b. Determine the income lo
- Classify the type of adjustment. Taxes owed but payable in the following period. (a) prepaid expense (b) unearned revenue (c) accrued revenue (d) accrued expense
- Henrich is a single taxpayer. In 2018, his taxable income is $450,000. What is his income tax and net investment Income tax liability in each of the following alternative scenarios? His $450,000 of taxable income includes $55,000 of long-term capital gai
- Which depreciation method would result in the highest amount of income tax expense being paid in the first year of an asset's useful life? A) straight-line B) sum-of-the-years'-digits C) double-declining balance D) either (b) or (c) depending on the c
- Complete a schedule D and 8949 for the following: (show where displayed on the 1040 Form) Michael L. (374 47774) and Joyce A. (642 81 9982) Sea, married taxpayers filling a joint return, sold the following securities in this tax year: # Shares Company A
- Prepare the retained earnings statement for the year 2010, based on the following information taken from the records of Gibson Inc. for the year 2010. Income tax applicable to income from continuing operations $119,000; income tax applicable to loss on di
- Which of the following is an exception to the most commonly use filing forms to report income and deductions to the IRS? a. 1040NR b. 1040EZ c. 1040A d. 1040
- Crayton Corporation has a taxable income of $1,500,000 and a pretax accounting income of $1,350,000 in the current accounting period. What tax liability appears on the balance sheet for this year, assuming a 35% tax rate? A. $472,500 B. $525,000 C. $150,0
- The year-end financial statements of Rattlers Tax Services are provided below. RATTLERS TAX SERVICES Income Statement Service revenue $77,500 Expenses: Salaries $46,000 Utilities $8,200 Insurance $5,800 Supplies $2,100 $62,100 Net income $15,400 RATT
- At December 31, 2017, Coronado Inc. had a deferred tax asset of $27,900. At December 31, 2018, the deferred tax asset is $58,200. The corporation's 2018 current tax expense is $58,000. What amount should Coronado report as total 2018 income tax expense?
- Plano had 50,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 30%. Required: Prepare a single-step income statement with ea
- Required: Use the following information to complete Rhonda Hill's 2013 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. The forms, schedules, and i
- Which of the following statements is true with regard to the reimbursement of employee business expenses? (a) Reimbursements of ordinary and necessary expenses may be subject to Federal income tax withholding. (b) Excess reimbursements of ordinary and nec
- Required: Based upon the following facts of Fred, Inc., calculate adjusted current earnings (ACE): - Alternative minimum taxable income (AMTI) $7,220,000 - Municipal bond interest 630,000 - Expense
Explore our homework questions and answers library
Browse
by subject