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502
Subject
Accounting
Date
Apr 25, 2024
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Required 1 Required 2 Prepare the journal entry(s) to record Payne’s income taxes for 2024, assuming it is more likely than not that the deferred tax asset will be realized in full. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Show less A No Event General Journal Debit Credit 1 1 Income tax expense 54 @ Deferred tax asset °@ Income tax payable 45 @ 2 2 Valuation allowance 108 Income tax expense 108 I Q00 000
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Related Questions
(f)
G
Current Attempt in Progress
Record current income taxes for 2023. (Credit account titles are automatically indented when the amount is entered. Do
not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List
debit entry before credit entry.)
Deferred Tax Asset
For the year ended December 31, 2023, Blue Ltd. reported income before income taxes of $206,700. Prior to 2023 taxable income
and accounting income was the same each year.
In 2023, Blue Ltd. paid $120,600 for advertising; of this amount, $40,200 was expensed in 2023. The remaining $80,400 was treated
as a prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $120,600 was
deductible for tax purposes in 2023.
The company paid $32,600 in 2023 for membership in a local golf club (which was not deductible for tax purposes).
In 2023 Blue Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses…
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Required information
[The following information applies to the questions displayed below.]
Arndt, Inc. reported the following for 2021 and 2022 ($ in millions):
2021
2022
$ 940
$1,032
852
Revenues
Expenses
Pretax accounting income (income statement)
Taxable income (tax return)
796
$ 144
$ 104
180
%24
214
Tax rate: 25%
a. Expenses each year include $58 million from a two-year casualty insurance policy purchased in 2021 for $116 million.
The cost is tax deductible in 2021.
b. Expenses include $2 million insurance premiums each year for life insurance on key executives.
c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were
$59 million and $75 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were
$53 million ($38 million collected in 2020 but not recognized as revenue until 2021) and $59 million, respectively. Hint.
View this as two temporary differences-one reversing in 2021; one…
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QUESTION 2
At the beginning of 2021, the following information relates to Farah Del Valle:
Net Tax Owing
Year
2019
$2,800
2020
9,400
2021 (Estimated)
6,700
Required: Calculate the minimum instalments that will be required and when they are due.
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Formula: Add, Subtract; Cell Referencing
Using Excel to Determine Income Tax Effects
PROBLEM
At December 31, 2022 and 2023, Secor Inc. reported amounts for a
deferred tax asset. Information concerning the company's income taxes
is provided here.
Deferred tax asset, December 31, 2022
Deferred tax asset, December 31, 2023
Current tax expense 2023
Ś
40,000
62,000
70,000
Student Work Area
Required: Provide input into cells shaded in yellow in this template. Use
mathematical formulas with cell references to the Problem area or to this work
area.
What amount should Secor report as total 2020 income tax expense?
2023 income tax expense
Current Tax Expense
Prepare the journal entries to record income taxes for 2020.
Income Tax Payable
Deferred Tax Expense
$
Current Tax Expense
22,000
Debit
70,000
22,000
Credit
70,000
22,000
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Wynn Farms reported a net operating loss of $225,000 for financial reporting and tax purposes in 2021. The enacted
tax rate is 25%. Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows:
Income
Taxable
Income
2017$ 73,000
2018 83,000
2019 145,000
2020
Таx
Таxes
Paid
$21,900
24,900
58,000
18,000
Rates
30%
30
40
40,000
45
Required:
1. NOL carrybacks are not allowed for most companies, except for property and casualty insurance companies as well
as some farm-related businesses. Assume Wynn is one of those businesses. Complete the table given below and
prepare the journal entry to recognize the income tax benefit of the net operating loss.
2. Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss.
X Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required Required Required
1 GJ
1
2
NOL carrybacks are not allowed for most companies, except…
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Self-Study Problem 2.13
A taxpayer (payor ex-spouse) is required to pay an ex-spouse (recipient ex-spouse) alimony of $12,000 per year. Determine how much
alimony is deductible by the payor ex-spouse and how much alimony is recognized as income by the recipient ex-spouse based on the
following information:
If an answer is zero, enter "0".
Details
a. The payments are made in 2021 as part of a divorce decree
executed in 2018. The divorce decree is modified in 2021 to
explicitly apply the provisions of the TCJA.
b. The payments are made in 2021 as part of a divorce decree
executed in 2016.
c. The payments are made in 2021 as part of a divorce decree
executed in 2021.
Deductible by
payor
Includable by
recipient
00
00
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Select the best answer.
A cash-basis taxpayer deposited $10,000 in a savings account on October 15, 2021. Her account was credited for
$10 of interest in 2021 and $100 of interest in 2022. She withdrew the entire $10,110 on December 31, 2022. How
much of this interest is taxable in 2022?
O
question Q 6
A. $0
B. $10
C. $100
D. $110
Submit Answers
93% Complete
Exit & Resum
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Select the correct order of the line items listed
below based on the sequence of their appearance
on Form US 1040. Number the items from the
lowest number (1) going to the first item to appear
on the return and the last number going to the
final item from the list to appear on the return.
Question 5 options:
Wages
Taxes withheld and quarterly tax payments
Non-refundable tax credit
Student Loan Interest Deduction
Standard Deduction
Interest Income
Refund or Taxes Due
Computed income tax before non-refundable tax
credits
Taxable Income
Adjusted Gross Income (AGI)
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INVOICE issued date 05/05/2020 as below:
You have received an invoice from one of our suppliers and you are required to prepare:
(i) Double entry for the invoice you have received base on the account and supplier number provided. (ii) Base on tax point of view, specify each item whether it is Capital or Revenue expenditure.
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nment
Required information
Problem 6-4A & 6-5A (Algo)
[The following information applies to the questions displayed below.]
Problem 6-4A (Algo)
F2
Federal income tax withholding
Social Security tax
Medicare tax
State income tax withholding
Gerald Utsey earned $48,700 in 2021 for a company in Kentucky. He is single with one dependent under 17 and is paid
weekly. The FUTA rate in Kentucky for 2021 is 0.6 percent on the first $7,000 of employee wages, and the SUTA rate is
5.4 percent with a wage base of $11,100. Use the percentage method in Appendix Cand the state information in
Appendix D. Manual payroll system is used and Box 2 is not checked.
3
Required:
Compute the following employee share of the taxes. (Do not round intermediate calculation. Round your final answers to 2 decimal
places.)
JUL
15
80
F3
$
4
E R
Q
F4
%
5
DII
F8
(
9
A
F9
U I O
Help
)
0
Save & Exit
F10
P
Check my wom
4
F11
Sub
{
+
[
F
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Problem 1-15
Filing Status and Tax Computation (LO 1.5)
Each of the following taxpayers has 2023 taxable income before the standard deduction as shown. Determine from the tax table
provided, the amount of the income tax (before any credits) for each of the following taxpayers for 2023:
Taxpayer(s) Filing Status
Single
MFS
Allen
Boyd
Caldwell
Dell
Evans
MFJ
H of H
Single
Taxable Income Before
the Standard Deduction
$36,000
38,200
64,020
50,922
59,003
Income Tax
$
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Required information
Skip to question
[The following information applies to the questions displayed below.]
Indicate the amount (if any) that Josh can deduct as an ordinary and necessary business deduction in each of the following situations.
Note: Leave no answers blank. Enter zero if applicable.
a. Josh borrowed $74,000 from First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds. Over the course of a year, Josh paid interest of $9,900 on the borrowed funds, but he received $9,000 of interest on the bonds.
b. Josh purchased a piece of land for $91,000 in order to get a location to expand his business. He also paid $8,500 to construct a new driveway for access to the property
c. This year Josh paid $24,600 to employ the mayor's son in the business. Josh would typically pay an employee with these responsibilities about $22,900, but the mayor assured Josh that after his son was hired, some city business would be coming his way.
d.…
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Please do not give image format
I beed help with these tax accounting questons, numbers 24 and 48. Answer using the year 2022
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Activity 5Answer the following questions below using the graduated tax table. Write your answer on the space provided after every questions.a. How much is the tax due on a taxable income of P150,000?Answer:b. How much is the tax due on a taxable income of P290,000?Answer:c. Ms. Carol earns compensation income of P3,230,000 during a taxable year. How much is the tax due of Ms. Carol? Answer:d. Mrs. Emily married earns compensation income of P460,000 during 2019. How much 1s the tax due of Mrs. Emily? Answer: Week 5 ACTIVITIES 5 29 Fundamentals of Accountancy, Business and Management 2e. The payslip of Mr. Budoy shows the following information:Basic salary P348,000SSS contribution 6,976PhilHealth contribution 4,500Pag-IBIG contribution 1,210How much is the tax due to Mr. Budoy?Answer:
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!
Required information
Problem 9-72 (LO 9-4) (Algo)
[The following information applies to the questions displayed below.)
Adam elects the accrual method of accounting for his business. What amount of deductions does Adam recognize this
year for the following transactions?
Note: Leave no answers blank. Enter zero if applicable. Assume a calendar year end.
Problem 9-72 Part-b (Algo)
b. On December 1 of this year, Adam paid $1,440 for a one-year contract with CleanUP Services to clean his store. The agreement calls
for services to be provided on a weekly basis.
Note: Use whole months for your calculation.
Answer is complete but not entirely correct.
Deductible amount $
0 ×
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1. The Request for Taxpayer Identification Number and Certification is also known as Form _____.
Answer:
A.
W-9
B.
W-4
C.
W-2
D.
I-9
2. When the 4th quarter FUTA tax is NOT at least _____, the payment may be mailed at year-end with Form 940.
Answer:
A.
$100
B.
$500
C.
$1,000
D.
$5,000
3. The full self-employment tax rate applied to the first $142,800 of earnings is _____.
Answer:
A.
2.9%
B.
6.2%
C.
12.4%
D.
15.3%
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Required information
Exercise 7-10 (Static) Other accrued liabilities-real estate taxes LO 7-5
[The following information applies to the questions displayed below.]
Glennelle's Boutique Incorporated operates in a city in which real estate tax bills for one year are issued in May of the
subsequent year. Thus, tax bills for 2022 are issued in May 2023 and are payable in July 2023.
Exercise 7-10 (Static) Part c-Journal entry
-2. Assume that the actual tax bill, received in May 2023, was for $47,600. Record the journal entry to show the effects of the
appropriate adjustment to the amount previously accrued.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
1
No
Event
1
Real estate tax expense
Real estate taxes payable
Cash
Answer is not complete.
General Journal
Debit
Credit
44,800 ×
2,800
47,600
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4
es
!
Required information
[The following information applies to the questions displayed below.]
Henrich is a single taxpayer. In 2023, his taxable income is $535,500. What are his income tax and net investment
income tax liability in each of the following alternative scenarios? Use Tax Rate Schedule,
Dividends and Capital Gains Tax Rates for reference.
Note: Do not round intermediate calculations. Leave no answer blank. Enter zero if applicable. Round your final
answers to 2 decimal places.
d. Henrich has $197,750 of taxable income, which includes $51,100 of long-term capital gain that is taxed at preferential rates. Assume
his modified AGI is $215,500.
Income tax
Net investment income tax
Total tax liability
$
$
Amount
my work
35,700.00
2,016.80
37,716.80
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Cramer Corporation, a calendar year, accrual basis corporation, reported $1.30 million of net income after tax on its financial
statements prepared in accordance with GAAP. The corporation's books and records reveal the following information:
• Cramer's federal income tax expense per books was $206,000.
• Cramer's book income included $16,000 of dividends received from a domestic corporation in which Cramer owns a 25 percent
stock interest, and $7,000 of dividends from a domestic corporation in which Cramer owns a 5 percent stock interest.
• Cramer recognized $16,000 of capital losses this year and no capital gains.
• Cramer recorded $11,000 of book expense for meals not provided by a restaurant and $13,000 of book expense for entertainment
costs.
• Cramer's depreciation expense for book purposes totaled $406,000. MACRS depreciation was $475,000.
Required:
a. Compute Cramer's federal taxable income and regular tax liability.
b. Prepare a Schedule M-1, page 6, Form 1120, reconciling…
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GIVEN:
Tax due
P1,500
Tax due date
April 15,202A
Date of filing and payment
August 15, 202A
COMPUTE: Total tax due and payable including compromise penalty.a. 2,500b. 2,560c. 2,935.16d. 2,950.21
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ront
Peragraph
Styies
Edting
Senitty
Now let's do a problem where we know the person's taxes and want to find their taxable income, and their AGI You may find the functions you determined in the question above helpha
6. Suppose someone paid $17,500 in taxes What could this person's adjusted gross income be?
1040
Linels)
Description
Amount
1 and Sb
Wagen, salanes, and Sps Adjusted gross income (AGI)
Standard deduction and exemption (singie. nondependent)
Subtract line 5 trom line 4 Taxable income
Total Tax (hom schedule)
Elfective tax rate (tax asacentage of all income)
11a
$12 200
11b
$17.500
2019 Tax Schedule
(NOT ued for HW- separate Tax Schedules previded wm
Single Taxable Income Tax Brackets and Rates, 2019
If taxxable income is over- but not oer the tax i
$0,700
$0,700
$39,475
584 200
$160,725
$204, 100
$30 475
$94.200
$160,725
$204.100
$610,300
10% of the amount over $0
$970 plus 12% of the amount over $0,700
$4,543 plus 22s of the amount over $39475
$14,382 plus 24 of the amount…
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Shawn Smith ES
P Search (Alt+Q)
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Accounting for Income Taxes
Cullumber Corporation has one temporary difference at
the end of 2020 that will reverse and cause taxable
amounts of $50,600 in 2021, $55,500 in 2022, and
$60,400 in 2023. Cullumber's pretax financial income for
2020 is $287,000, and the tax rate is 30% for all years.
There are no deferred taxes at the beginning of 2020.
1. Compute taxable income and income taxes payable for 2020.
2. Prepare the journal entry to record income tax expense, deferred income taxes, and
income taxes payable for 2020.
ENotes
69%
ENG
12:46 AM
INTL
4/3/2022
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PrtSc
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SCHEDULE 1(Form 1040)Department of the Treasury Internal Revenue Service
Additional Income and Adjustments to Income
► Attach to Form 1040.► Go to www.irs.gov/Form1040 for instructions and the latest information.
OMB No. 1545-0074
2018
AttachmentSequence No. 01
Name(s) shown on Form 1040Noah Yobs
Your social security number
123-45-6789
Additional Income
1-9b
Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1-9b
10
Taxable refunds, credits, or offsets of state and local income taxes . . . . . .
10
11
Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
12
Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . . . . . .
12
13
Capital gain or (loss). Attach Schedule D if required. If not required, check here ► ◻
13
14
Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . . . . . . . .
14
15a…
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ments and provides you with the following information: 2018 2019 2020 2021 Annual tax liability $31,000 $32,000 Est $35,000 Est. $37,000 Annual tax withheld $27,000 $30,000 Est $31,000 Advise Michelle as to her instalment payment options for 2021 the minimum payment amount when instalment payments are due how much tax would have to be withheld in 2021 to avoid liability for instalment payments?
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Instructions:
1. Download BIR Forms 1701 Version 2018 at www.bir.gov.ph.
2. Compute the income tax payable, if any for taxable year 2021.
YOU are engaged in the merchandising business and at the same time employed by PA-MINE Corp. as an Accountant for the TY 2021.
In compliance with the existing rules in doing business, you applied for your TIN where your home BIR RDO (select the BIR which has jurisdiction over the place of your residence) assigned you Taxpayer Identification No. 123-456-789-0000.
Additional information:
You chose graduated tax rate
You opted for itemized deduction
Your financial records showed the following:
Gross Sales – Php 4,000,000
Cost of Sales – Php 2,000,000
Expenses –
Salaries and wages of staff – Php 360,000
Depreciation of car used in delivery – Php 100,000
Representation expense – Php 10,000
Office Rent expense – Php 360,000
Rent expense on your condominium – Php – 240,000
Utilities in office – Php 120,000
Electricity expenses in condominium – Php…
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As a newly hired IRS trainee, you have been asked to calculate the amount of tax refund or tax owed for the taxpayer (in $).
(Enter a positive value for the amount.)
Refund/Owe
(Select one)
Тax
Тах
Other
Name
Payments
Amount
Liability
Credits
Таxes
Hayward
$3,559
$750
$3,460
---Select---
$
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4
Required information
[The following information applies to the questions displayed below.]
Henrich is a single taxpayer. In 2023, his taxable income is $531,500.
What are his income tax and net investment income tax liability in
each of the following alternative scenarios? Use Tax Rate Schedule,
Dividends and Capital Gains Tax Rates for reference.
Note: Do not round intermediate calculations. Leave no answer
blank. Enter zero if applicable. Round your final answers to 2
decimal places.
b. His $531,500 of taxable income includes $2,000 of long-term capital gain that is
taxed at preferential rates. Assume his modified AGI is $570,000.
Income tax
Net investment income tax
Total tax liability
Amount
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Question A
Determining a Refund or Taxes Owed. Based on the following data, will Ann Wilton receive a federal tax refund or owe additional taxes in2019? LO2Net income, $48,190Deductions to determine net income, $11,420Federal income tax withheld, $6,784Total non-refundable tax credit amounts, excluding medical expenses, $12,069Medical expenses, $2,300
Don't work in Excel
Full explainthe this question very fast solution sent me step by step Don't ignore any part all part work u Text typing work only not allow paper work
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Problem 5-9B (Algo)
Using the percentage method in Appendix C (or the IRS federal income tax assistant), calculate the federal withholding amounts for
the following employees. All W-4s were received in 2020, no box was checked in Step 2c and no additional information was included
in Step 4. For Abbey, enter $4,000 in Step 3a in the worksheet ($2,000 x 2 dependents). (Round your intermediate calculations and
final answers to 2 decimal places.)
Filing
Status
Amount per
Pay
Frequency
Federal
Income Tax
Dependents
Employee
Pay Period
L. Abbey
HH
Two dependents <17
Semimonthly
$
4,220
G. Narleski
MJ
No dependents
Weekly
$
1,900
T. Leider
No dependents
Monthly
$
4,020
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11.A taxpayer is claiming tax preparation expense as a legal and professional fee. They paid $430 at your office last year. The forms breakdown by cost is as follows:
Form 1040- $100 Form Sch. C- $125 Form SE- $55 Form 8867- $75 Form 8863- $75
What is the correct amount that can be deducted on their Schedule C for the current year?
Choose one answer.
a. $280
b. $180
c. $355
d. $430
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PSb 3-7 Calculate Federal Income Tax Withholding Using the Percentage Method (2020 Form W-4)
For each employee listed, use the percentage method to calculate federal income tax withholding for an employee who has submitted a 2020 Form W-4. Refer to Appendix A, 2020
Federal Tax Tables in your textbook.
Publication 15-T (2020)
1: Julia Jacobsen files as single on her tax return and earned weekly gross pay of 500. For each pay period she makes a 401(k) contribution of 2% of gross pay. Julia
checked box 2c on Form W-4, entered $40 on line 4c of the form, and did not enter any information in step 3 of the form.
Federal income tax withholding = |
2: Alejandro Wright files as single on his tax return and earned weekly gross pay of 1300. He does not make any retirement plan contributions. Alejandro entered 500 in
step 3 of the form and did not enter any information in steps 2 & 4 of the form.
Federal income tax withholding = $
Tentative Federal Income Tax Withholding = $
3: Beatrice Nen files…
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SEE MORE QUESTIONS
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT
Related Questions
- (f) G Current Attempt in Progress Record current income taxes for 2023. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Deferred Tax Asset For the year ended December 31, 2023, Blue Ltd. reported income before income taxes of $206,700. Prior to 2023 taxable income and accounting income was the same each year. In 2023, Blue Ltd. paid $120,600 for advertising; of this amount, $40,200 was expensed in 2023. The remaining $80,400 was treated as a prepaid expense for accounting purposes and would be expensed equally over the 2024-2025 period. The full $120,600 was deductible for tax purposes in 2023. The company paid $32,600 in 2023 for membership in a local golf club (which was not deductible for tax purposes). In 2023 Blue Ltd. began offering a 1-year warranty on all merchandise sold. Warranty expenses…arrow_forwardRequired information [The following information applies to the questions displayed below.] Arndt, Inc. reported the following for 2021 and 2022 ($ in millions): 2021 2022 $ 940 $1,032 852 Revenues Expenses Pretax accounting income (income statement) Taxable income (tax return) 796 $ 144 $ 104 180 %24 214 Tax rate: 25% a. Expenses each year include $58 million from a two-year casualty insurance policy purchased in 2021 for $116 million. The cost is tax deductible in 2021. b. Expenses include $2 million insurance premiums each year for life insurance on key executives. c. Arndt sells one-year subscriptions to a weekly journal. Subscription sales collected and taxable in 2021 and 2022 were $59 million and $75 million, respectively. Subscriptions included in 2021 and 2022 financial reporting revenues were $53 million ($38 million collected in 2020 but not recognized as revenue until 2021) and $59 million, respectively. Hint. View this as two temporary differences-one reversing in 2021; one…arrow_forwardQUESTION 2 At the beginning of 2021, the following information relates to Farah Del Valle: Net Tax Owing Year 2019 $2,800 2020 9,400 2021 (Estimated) 6,700 Required: Calculate the minimum instalments that will be required and when they are due.arrow_forward
- Formula: Add, Subtract; Cell Referencing Using Excel to Determine Income Tax Effects PROBLEM At December 31, 2022 and 2023, Secor Inc. reported amounts for a deferred tax asset. Information concerning the company's income taxes is provided here. Deferred tax asset, December 31, 2022 Deferred tax asset, December 31, 2023 Current tax expense 2023 Ś 40,000 62,000 70,000 Student Work Area Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem area or to this work area. What amount should Secor report as total 2020 income tax expense? 2023 income tax expense Current Tax Expense Prepare the journal entries to record income taxes for 2020. Income Tax Payable Deferred Tax Expense $ Current Tax Expense 22,000 Debit 70,000 22,000 Credit 70,000 22,000arrow_forwardWynn Farms reported a net operating loss of $225,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid in Wynn's first four years of operation were as follows: Income Taxable Income 2017$ 73,000 2018 83,000 2019 145,000 2020 Таx Таxes Paid $21,900 24,900 58,000 18,000 Rates 30% 30 40 40,000 45 Required: 1. NOL carrybacks are not allowed for most companies, except for property and casualty insurance companies as well as some farm-related businesses. Assume Wynn is one of those businesses. Complete the table given below and prepare the journal entry to recognize the income tax benefit of the net operating loss. 2. Show the lower portion of the 2021 income statement that reports the income tax benefit of the net operating loss. X Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required Required 1 GJ 1 2 NOL carrybacks are not allowed for most companies, except…arrow_forwardSelf-Study Problem 2.13 A taxpayer (payor ex-spouse) is required to pay an ex-spouse (recipient ex-spouse) alimony of $12,000 per year. Determine how much alimony is deductible by the payor ex-spouse and how much alimony is recognized as income by the recipient ex-spouse based on the following information: If an answer is zero, enter "0". Details a. The payments are made in 2021 as part of a divorce decree executed in 2018. The divorce decree is modified in 2021 to explicitly apply the provisions of the TCJA. b. The payments are made in 2021 as part of a divorce decree executed in 2016. c. The payments are made in 2021 as part of a divorce decree executed in 2021. Deductible by payor Includable by recipient 00 00arrow_forward
- Select the best answer. A cash-basis taxpayer deposited $10,000 in a savings account on October 15, 2021. Her account was credited for $10 of interest in 2021 and $100 of interest in 2022. She withdrew the entire $10,110 on December 31, 2022. How much of this interest is taxable in 2022? O question Q 6 A. $0 B. $10 C. $100 D. $110 Submit Answers 93% Complete Exit & Resumarrow_forwardSelect the correct order of the line items listed below based on the sequence of their appearance on Form US 1040. Number the items from the lowest number (1) going to the first item to appear on the return and the last number going to the final item from the list to appear on the return. Question 5 options: Wages Taxes withheld and quarterly tax payments Non-refundable tax credit Student Loan Interest Deduction Standard Deduction Interest Income Refund or Taxes Due Computed income tax before non-refundable tax credits Taxable Income Adjusted Gross Income (AGI)arrow_forwardINVOICE issued date 05/05/2020 as below: You have received an invoice from one of our suppliers and you are required to prepare: (i) Double entry for the invoice you have received base on the account and supplier number provided. (ii) Base on tax point of view, specify each item whether it is Capital or Revenue expenditure.arrow_forward
- nment Required information Problem 6-4A & 6-5A (Algo) [The following information applies to the questions displayed below.] Problem 6-4A (Algo) F2 Federal income tax withholding Social Security tax Medicare tax State income tax withholding Gerald Utsey earned $48,700 in 2021 for a company in Kentucky. He is single with one dependent under 17 and is paid weekly. The FUTA rate in Kentucky for 2021 is 0.6 percent on the first $7,000 of employee wages, and the SUTA rate is 5.4 percent with a wage base of $11,100. Use the percentage method in Appendix Cand the state information in Appendix D. Manual payroll system is used and Box 2 is not checked. 3 Required: Compute the following employee share of the taxes. (Do not round intermediate calculation. Round your final answers to 2 decimal places.) JUL 15 80 F3 $ 4 E R Q F4 % 5 DII F8 ( 9 A F9 U I O Help ) 0 Save & Exit F10 P Check my wom 4 F11 Sub { + [ Farrow_forwardProblem 1-15 Filing Status and Tax Computation (LO 1.5) Each of the following taxpayers has 2023 taxable income before the standard deduction as shown. Determine from the tax table provided, the amount of the income tax (before any credits) for each of the following taxpayers for 2023: Taxpayer(s) Filing Status Single MFS Allen Boyd Caldwell Dell Evans MFJ H of H Single Taxable Income Before the Standard Deduction $36,000 38,200 64,020 50,922 59,003 Income Tax $arrow_forwardRequired information Skip to question [The following information applies to the questions displayed below.] Indicate the amount (if any) that Josh can deduct as an ordinary and necessary business deduction in each of the following situations. Note: Leave no answers blank. Enter zero if applicable. a. Josh borrowed $74,000 from First State Bank using his business assets as collateral. He used the money to buy City of Blanksville bonds. Over the course of a year, Josh paid interest of $9,900 on the borrowed funds, but he received $9,000 of interest on the bonds. b. Josh purchased a piece of land for $91,000 in order to get a location to expand his business. He also paid $8,500 to construct a new driveway for access to the property c. This year Josh paid $24,600 to employ the mayor's son in the business. Josh would typically pay an employee with these responsibilities about $22,900, but the mayor assured Josh that after his son was hired, some city business would be coming his way. d.…arrow_forward
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