The following information is available for Marigold Corporation for 2020. 1. 2. 3. 45 6. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $114,000. This difference will reverse in equal amounts of $28,500 over the years 2021-2024. Interest received on municipal bonds was $10,200. Rent collected in advance on January 1, 2020, totaled $61,800 for a 3-year period. Of this amount, $41,200 was reported as unearned at December 31, 2020, for book purposes. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. Income taxes of $308,000 are due per the tax return for 2020. No deferred taxes existed at the beginning of 2020.
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- The following information is available for Marigold Corporation for 2020. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $124,000. This difference will reverse in equal amounts of $31,000 over the years 2021–2024. 2. Interest received on municipal bonds was $9,300. 3. Rent collected in advance on January 1, 2020, totaled $64,200 for a 3-year period. Of this amount, $42,800 was reported as unearned at December 31, 2020, for book purposes. 4. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. 5. Income taxes of $297,000 are due per the tax return for 2020. 6. No deferred taxes existed at the beginning of 2020. Taxable income in 2020 = 742,500 Pretax financial income for 2020 = 833,000 Prepare the income tax expense section of the income statement for 2020, beginning with “Income before income taxes. picture below:The following information is available for Marigold Corporation for 2020. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $124,000. This difference will reverse in equal amounts of $31,000 over the years 2021–2024. 2. Interest received on municipal bonds was $10,100. 3. Rent collected in advance on January 1, 2020, totaled $56,700 for a 3-year period. Of this amount, $37,800 was reported as unearned at December 31, 2020, for book purposes. 4. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. 5. Income taxes of $308,000 are due per the tax return for 2020. 6. No deferred taxes existed at the beginning of 2020.The following information is available for Marigold Corporation for 2020. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $124,000. This difference will reverse in equal amounts of $31,000 over the years 2021–2024. 2. Interest received on municipal bonds was $9,300. 3. Rent collected in advance on January 1, 2020, totaled $64,200 for a 3-year period. Of this amount, $42,800 was reported as unearned at December 31, 2020, for book purposes. 4. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. 5. Income taxes of $297,000 are due per the tax return for 2020. 6. No deferred taxes existed at the beginning of 2020. Compute taxable income for 2020. Taxable income for 2020 Compute pretax financial income for 2020. Pretax financial income for 2020 Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume…
- The following information is available for Splish Corporation for 2020. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $116,000. This difference will reverse in equal amounts of $29,000 over the years 2021–2024. 2. Interest received on municipal bonds was $10,200. 3. Rent collected in advance on January 1, 2020, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, 2020, for book purposes. 4. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. 5. Income taxes of $312,000 are due per the tax return for 2020. 6. No deferred taxes existed at the beginning of 2020. (a) Compute taxable income for 2020. Taxable income for 2020 $enter Taxable income for 2020 in dollarsThe following information is available for Remmers Corporation for 2020. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This difference will reverse in equal amounts of $30,000 over the years 2021–2024. 2. Interest received on municipal bonds was $10,000. 3. Rent collected in advance on January 1, 2020, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, 2020, for book purposes. 4. The tax rates are 20% for 2020 and 17% for 2021 and subsequent years. 5. Income taxes of $160,000 are due per the tax return for 2020. 6. No deferred taxes existed at the beginning of 2020. Instructions a. Compute taxable income for 2020. b. Compute pretax financial income for 2020. c. Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume taxable income was $480,000 in 2021. d. Prepare the…For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $1,004,000. Selected information for 2024 from Fidelity’s records follows: Interest income on municipal governmental bonds $ 60,000 Depreciation claimed on the 2024 tax return in excess of depreciation on the income statement 84,000 Carrying amount of depreciable assets in excess of their tax basis at year-end 144,000 Warranty expense reported on the income statement 40,000 Actual warranty expenditures in 2024 30,000 Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $15,000 in its deferred tax asset and deferred tax liability accounts, respectively. Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate journal entry. What is Fidelity’s 2024 net income?
- The following information is available for Oriole Corporation for 2025. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $114,000. This difference will reverse in equal amounts of $28,500 over the years 2026-2029. Interest received on municipal bonds was $10,200. Rent collected in advance on January 1, 2025, totaled $61,800 for a 3-year period. Of this amount, $41,200 was reported as unearned at December 31, 2025, for book purposes. 2. 3. 4. The tax rates are 20% for 2025 and 17% for 2026 and subsequent years. 5. Income taxes of $154,000 are due per the tax return for 2025. 6. No deferred taxes existed at the beginning of 2025 (a) (b) (c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2025 and 2026. Assume taxable income was $426,000 in 2026. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not…The following information is for Apple Co. for 2019:1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $900,000. This difference will reverse in equal amounts of $225,000 over the years 2020–2023.2. Interest received on governmental bonds was $75,000. 3. Rent collected in advance on January 1, 2019, totaled $450,000 for a 3-year period. Of this amount, $300,000 was reported as unearned at December 31 for book purposes. 4. The tax rates are 40% for 2019 and 35% for 2020 and subsequent years. 5. Income taxes of $2,400,000 are due per the tax return for 2019. 6. No deferred taxes existed at the beginning of 2019. Required:a. Compute the taxable income for 2019!b. Compute pretax financial income for 2019!c. Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2019 and 2020. Assume taxable income was $7,350,000 in 2020!For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $1,036,000. Selected information for 2021 from Fidelity’s records follows: Interest income on municipal governmental bonds $ 92,000 Depreciation claimed on the 2021 tax return in excessof depreciation on the income statement 116,000 Carrying amount of depreciable assets in excessof their tax basis at year-end 208,000 Warranty expense reported on the income statement 56,000 Actual warranty expenditures in 2021 46,000 Fidelity's income tax rate is 25%. At January 1, 2021, Fidelity's records indicated balances of zero and $23,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required:1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry.2. What is Fidelity’s 2021 net income?
- For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $1,000,000. Selected information for 2024 from Fidelity's records follows: Interest income on municipal governmental bonds $ 56,000 Depreciation claimed on the 2024 tax return in excess of depreciation on the income statement Carrying amount of depreciable assets in excess of their tax basis at year-end 80,000 136,000 Warranty expense reported on the income statement 38,000 28,000 Actual warranty expenditures in 2024 Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $14,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required: 1. Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate journal entry. 2. What is Fidelity's 2024 net income? Complete this question by entering your answers in the tabs below. Required 1 Calculation General Journal Required 2 Determine the…For the year ended December 31, 2024, Fidelity Engineering reported pretax accounting income of $988,000. Selected information for 2024 from Fidelity's records follows: Interest income on municipal governmental bonds $ 44,000 Depreciation claimed on the 2024 tax return in excess of depreciation on the income statement Carrying amount of depreciable assets in excess of their tax basis at year-end Warranty expense reported on the income statement 68,000 112,000 32,000 Actual warranty expenditures in 2024 22,000 Fidelity's income tax rate is 25%. At January 1, 2024, Fidelity's records indicated balances of zero and $11,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required: Determine the amounts necessary to record income taxes for 2024, and prepare the appropriate journal entry. What is Fidelity's 2024 net income?For the year ended December 31, 2018, Fidelity Engineering reported pretax accounting income of $977,000.Selected information for 2018 from Fidelity’s records follows:Interest income on municipal bonds $32,000Depreciation claimed on the 2018 tax return in excess of depreciation on the income statement 55,000Carrying amount of depreciable assets in excess of their tax basis at year-end 85,000Warranty expense reported on the income statement 26,000Actual warranty expenditures in 2018 16,000Fidelity’s income tax rate is 40%. At January 1, 2018, Fidelity’s records indicated balances of zero and $12,000in its deferred tax asset and deferred tax liability accounts, respectively.Required:1. Determine the amounts necessary to record income taxes for 2018, and prepare the appropriate journal entry.2. What is Fidelity’s 2018 net income?