None What book-tax differences in year 1 and year 2 associated with its capital gains and losses wouldDEF Incorporated report in the following alternative scenarios? Identify each book-taxdifference as favorable or unfavorable and as permanent or temporary.Note: Leave no answer blank. Enter zero if applicable and select "Not applicable" if noeffect.Required:a. In year 1, DEF recognized a loss of $15,000 on land that it had held for investment. Inyear 1, it also recognized a $30,000 gain on equipment it had purchased a few years ago.The equipment sold for $50,000 and had an adjusted basis of $20,000. DEF had deducted$40,000 of depreciation on the equipment. In year 2, DEF recognized a capital loss of$2,000.Book-tax DifferenceFavorable, N/A, orUnfavorableTemporary, N/A, orPermanentYear 1Year 2b. In year 1, DEF recognized a loss of $15,000 on land that it had held for investment. Italso recognized a $20,000 gain on equipment it had purchased a few years ago. Theequipment sold for $50,000 and had an adjusted basis of $30,000. DEF had deducted$15,000 of tax depreciation on the equipment.Year 1Year 2Book-tax DifferenceFavorable, N/A, orUnfavorableTemporary, N/A, orPermanent

a. In year 1, DEF recognized a loss of $15,000 on land that it had held for investment. In year 1,…

Answered: What book-tax differences in year 1 and…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter4: Gross Income

Section: Chapter Questions

Problem 4BD

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[The following information applies to the questions displayed below.] What book-tax differences in year 1 and year 2 associated with its capital gains and losses would DEF Incorporated report in the following alternative scenarios? Identify each book-tax difference as favorable or unfavorable and as permanent or temporary. Note: Leave no answer blank. Enter zero if applicable and select "Not applicable" if no effect. a. In year 1, DEF recognized a loss of $15,000 on land that it had held for investment. In year 1, it also recognized a $30,000 gain on equipment it had purchased a few years ago. The equipment sold for $50,000 and had an adjusted basis of $20,000. DEF had deducted $40,000 of depreciation on the equipment. In year 2, DEF recognized a capital loss of $2,000. Year 1 Year 2 X Answer is complete but not entirely correct. Favorable or Temporary or Unfavorable Permanent Unfavorable Infavorable Book-tax Difference $ 0X 0 Temporary Temporary
What book-tax differences in year 1 and year 2 associated with its capital gains and losses would ABD Incorporated report in the following alternative scenarios? Identify each book-tax difference as favorable or unfavorable and as permanent or temporary. Note: Leave no answer blank. Enter zero if applicable and select "Not applicable" if no effect. a. a. Capital gains Capital losses Year 1 Year 2 Book-tax Difference Year 1 $ 20,000 8,000 Year 2 $ 5,000 0 Favorable or Unfavorable Temporary or Permanent
Required information [The following information applies to the questions displayed below.] What book-tax differences in year 1 and year 2 associated with its capital gains and losses would DEF Inc. report in the following alternative scenarios? Identify each book-tax difference as favorable or unfavorable and as permanent or temporary. a. In year 1, DEF recognized a loss of $15,000 on land that it had held for investment. In year 1, it also recognized a $30,000 gain on equipment it had purchased a few years ago. The equipment sold for $50,000 and had an adjusted basis of $20,000. DEF had deducted $40,000 of depreciation on the equipment. In year 2, DEF recognized a capital loss of $2,000. Year 1 Year 2 Book-tax Difference Favorable or Temporary or Unfavorable Permanent
What book-tax differences in year 1 and year 2 associated with its capital gains and losses would ABD Incorporated report in the following alternative scenarios? Identify each book-tax difference as favorable or unfavorable and as permanent or temporary. Note: Leave no answer blank. Enter zero if applicable and select "Not applicable" if no effect. b. Capital gains Capital losses Year 1 $ 8,000 20,000 Year 2 $ 5,000 0 Book-tax Difference Favorable or Unfavorable Temporary or Permanent Year 1 Year 2
What book–tax differences in year 1 and year 2 associated with its capital gains and losses would DEF Inc. report in the following alternative scenarios? Identify each book–tax difference as favorable or unfavorable and as permanent or temporary. b. In year 1, DEF recognized a loss of $15,000 on land that it had held for investment. It also recognized a $20,000 gain on equipment it had purchased a few years ago. The equipment sold for $50,000 and had an adjusted basis of $30,000. DEF had deducted $15,000 of tax depreciation on the equipment. There were no capital transactions in year 2. (For all requirements, leave no answer blank. Enter zero if applicable and select "Not applicable" if no effect.) Book-tax Difference Favorable or Unfavorable Temporary or Permanent Year 1 Year 2
What book-tax differences in year 1 and year 2 associated with its capital gains and losses would ABD Incorporated report in the following alternative scenarios? Identify each book-tax difference as favorable or unfavorable and as permanent or temporary. (Leave no answer blank. Enter zero if applicable and select "Not applicable" if no effect.) Capital gains Capital losses Book-tax Difference Year 1 Year 2 Year 1 Year 2 $ 8,000 20,000 $ 5,000 0 Favorable or Unfavorable Temporary or Permanent
[The following information applies to the questions displayed below] What book-tax differences in year 1 and year 2 associated with its capital gains and losses would ABD Incorporated report in the following alternative scenarios? Identify each book-tax difference as favorable or unfavorable and as permanent or temporary. Note: Leave no answer blank. Enter zero if applicable and select "Not applicable" if no effect. f. Answer for year 7 only. Capital gains Capital losses Year 1 $ 0 10,000 Years 2 Year 7 $ 0 0 $ 15,000 0 Book-tax Difference Favorable or Unfavorable Year 7 Temporary or Permanent
! a. Required information [The following information applies to the questions displayed below.] What book-tax differences in year 1 and year 2 associated with its capital gains and losses would ABD Incorporated report in the following alternative scenarios? Identify each book-tax difference as favorable or unfavorable and as permanent or temporary. (Leave no answer blank. Enter zero if applicable and select "Not applicable" if no effect.) Capital gains Capital losses Year 1 Year 2 Book-tax Difference Year 1 $ 20,000 8,000 Year 2 $ 5,000 0 Favorable or Unfavorable Temporary or Permanent
Due to differences between depreciation reported in the income statement and depreciation deducted for tax purposes, Lucas Corp. has $2 million in temporary differences that will increase taxable Income next year. Assuming that Lucas has no other temporary differences, deferred income taxes should be reported in this year's ending balance sheet as a: Multiple Choice Current deferred asset. Noncurrent deferred tax asset. Current deferred tax liability. Noncurrent deferred tax Iliability. Finacial Acco..pages student-s-reque...pdf Finacial-Accoun...pdf Finacial Acco...pages -pdf Removed
Complete the following statements by filling in the blanks. A. In a period in which a taxable temporary difference reverses, the reversal will cause taxable income to be ____________ pretax financial income. (less than / greater than). B. If a $76,400 balance in Deferred Tax Asset was computed by use of a 40% rate, the underlying cumulative temporary difference amounts to $_________ . C. Deferred taxes __________ recorded to account for permanent differences. (are / are not) D. If a taxable temporary difference originates in 2020, it will cause taxable income for 2020 to be ______________ pretax financial income for 2020. (less than / greater than) E. If total tax expense is $52,200 and deferred tax expense is $67,300, then the current portion of the expense computation is referred to as current tax ______________ of $_____________ . (expense / benefit) F. If a corporation’s tax return shows taxable income of $98,000 for Year 2 and a tax rate of 40%, how much will appear on the…
Due to differences between depreciation reported in the income statement and depreciation deducted for tax purposes, Lucas Corp. has $2 million in temporary differences that will increase taxable income next year. Assuming that Lucas has no other temporary differences, deferred income taxes should be reported in this year's ending balance sheet as a______?
(Terminology, Relationships, Computations, Entries)InstructionsComplete the following statements by filling in the blanks.(a) In a period in which a taxable temporary difference reverses, the reversal will cause taxable income to be _______ (less than, greater than) pretax financial income.(b) If a $76,000 balance in Deferred Tax Asset was computed by use of a 40% rate, the underlying cumulative temporary difference amounts to $_______.(c) Deferred taxes ________ (are, are not) recorded to account for permanent differences.(d) If a taxable temporary difference originates in 2017, it will cause taxable income for 2017 to be ________ (less than, greater than) pretax financial income for 2017.(e) If total tax expense is $50,000 and deferred tax expense is $65,000, then the current portion of the expense computation is referred to as current tax _______ (expense, benefit) of $_______.(f) If a corporation’s tax return shows taxable income of $100,000 for Year 2 and a tax rate of 40%, how…

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