accounts

The differences between the book basis and tax basis of the assets and liabilities of Castle Corporation at the end of 2008 are presented below. � It is estimated that the litigation liability will be settled in 2009. The difference in accounts receivable will result in taxable amounts of $30,000 in 2009 and $20,000 in 2010. The company has taxable income of $350,000 in 2008 and is expected to have taxable income in each of the following 2 years. Its enacted tax rate is 34% for all years. This is the company’s first year of operations. The operating cycle of the business is 2 years. Instructions (a) Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2008. (b) Indicate how deferred income taxes will be reported on the balance sheet at the end of2008.

  1. 👍 0
  2. 👎 0
  3. 👁 259

Respond to this Question

First Name

Your Response

Similar Questions

  1. Accounting

    On March 1, 2003, a company paid a $16,200 premium on a 36-month insurance policy for coverage beginning on that date. Refer to that policy and fill in the blanks in the following table: Check 2005 insurance expense: Accrual,

    asked by Allison Anderson on December 31, 2011
  2. linear algebra

    what is the basis of a subspace or R3 defined by the equation 2x1+3x2+x3=0 I know the basis is vectors and but how do you get that?

    asked by jen on May 16, 2010
  3. Business Finance

    Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $2,190,000 and will last for 7 years. Variable costs are 38 percent of sales, and fixed costs are $122,000 per year.

    asked by Leigh on December 4, 2010
  4. teaching in Early Childhood Programs

    What resource do content standards provide to early childhood programs? A. The basis for what teachers can reasonably be expected to know and do in the program over time B. The basis for what children can reasonably be expected to

    asked by Daniela on August 19, 2014
  5. Accounting

    During 2013, Moore Corporation paid $14,000 of dividends. Moore's assets, liabilities, and common stock at the end of 2012 and 2013 were: 12/31/2012 Total Assets:$144,200 Total Liabilities:$52,600 Common Stock:$60,000 12/31/2013

    asked by Kimberly on April 4, 2017
  1. accounting 205

    A proprietor makes a cash withdrawal from the proprietorship. How does this affect the accounting equation? (Points : 1) This has no effect on assets, liabilities, or owner’s equity. Assets decrease; owner’s equity decreases.

    asked by bernagene on July 8, 2012
  2. accounting

    :The balance sheet for Glenwood Corporation at December 31, 2011, showed the following subtotals: Current Assets $140,000 Current Liabilities 80,000 Property & Equipment 420,000 Total Stockholders' Equity 420,000 Retained Earnings

    asked by Anonymous on October 23, 2011
  3. social studies

    Describe the causes and effects of sectional differences between the North and South by comparing northern and southern whites. Consider differences in the basis of wealth and city population

    asked by HELP PLEASE on February 21, 2020
  4. Finance

    Trying to figure out how to do problems like these. So confused! 1. The receivables turnover for 2009 is 10 times. 2. All sales are on account. 3. The profit margin for 2009 is 14.5%. 4. Return on assets is 22% for 2009. 5. The

    asked by Ali on November 13, 2011
  5. Accounting Math

    Can anyone please show me the calculation for these problems: Burlin Company starts the year with $100,000 in assets and $80,000 in liabilities. Net Income for the year is $25,000, and no dividends are paid. How much is owner’s

    asked by Peaches on September 13, 2009
  6. fin 300

    4. Assume that bank has assets located in Germany worth €150 million earning an average of 8 percent. It also holds €100 in liabilities and pays an average of 6 percent per year. The current sot rate is €1.50 for $1. If the

    asked by sandy ann on January 9, 2013

You can view more similar questions or ask a new question.