Student Name:
Class:
2016 2017 2018 2019
60,000$ 80,000$ 70,000$ 70,000$
(39,600) (52,800) (18,000) (9,600)
Cumulative
Temporary
2016 2017 2018 2019 Difference
Previous balance
Credit/(debit)
Cumulative difference
Tax depreciation
Temporary differences:
Tax rate
Year-end balance
30,000 30,000 30,000 30,000
Straight-line
Instructor
Calculations
ZEKANY CORPORATION
Problem 16-04
McGraw-Hill/Irwin
Pretax accounting income
Depreciation for tax
Taxable income
Tax rate
Tax payable
Student Name:
Class:
Instructor
Problem 16-04
McGraw-Hill/Irwin
Debit Credit
9,000 «- Correct!
Income tax expense
Journal entry at the end of 2016
Account
ZEKANY CORPORATION
General Journal
Income tax payable
Income tax expense
Deferred tax liability
Income tax payable
Income tax expense
Deferred tax liability
Deferred tax liability
Journal entry at the end of 2019
Journal entry at the end of 2018
Journal entry at the end of 2017
Income tax payable
Income tax expense
Deferred tax liability
Income tax payable
$120,000
2016 2017 2018 2019
$39,600 $52,800 $18,000 $9,600
Depreciation
Given Data P16-04:
Asset cost
Accounting income before tax and depr.
Average and marginal income tax rate
Student Name:
Class:
2016 2017 2018 2019
$350,000 $270,000 $340,000 $380,000
Correct! Correct! Correct! Correct!
Cumulative
Temporary
2016 2017 2018 2019 Difference
(50,000) 20,000 25,000 5,000 $0 «- Correct!
2016 2017 2018 2019
Previous balance
Tax rate
Year-end balance
$50,000 $30,000 $5,000 $0
Debit Credit
Income tax expense
Deferred tax liability
Income tax payable
Journal entry at the end of 2019
Income tax payable
Income tax payable
Income tax expense
Journal entry at the end of 2018
Journal entry at the end of 2017
Income tax payable
Income tax expense
Deferred tax liability
105,000 «- Correct!
15,000
Income tax expense
Deferred tax liability
Journal entry at the end of 2016
Account
Temporary differences:
Cumulative difference
Instructor
Calculations
DEVILLE COMPANY
General Journal
DEVILLE COMPANY
Problem 16-05
McGraw-Hill/Irwin
Pretax accounting income
Installment sales
Municipal bond interest
Taxable income
Tax rate
Income tax payable
2016 2017 2018 2019
$350,000 $270,000 $340,000 $380,000
$50,000
2016 Installment sale
Given Data P16-05:
Pretax accounting income
2016 2017 2018 2019
Enacted tax rate
Cash collected on installment
2018 Interest from investments
Student Name:
Class:
Current Future
Year Deductible
2014 2015 2016 Amounts
(135)
Receivable – income tax refund
Deferred tax asset
Income tax benefit
Less: beginning balance
Journal entry at the end of 2016
$10
Ending balance (balance currently needed)
(in millions)
Prior Years
Deferred tax asset:
Accounting Loss
Permanent difference:
Problem 16-10
McGraw-Hill/Irwin
Intructor
FORES CONSTRUCTION COMPANY
Calculations
Requirement 1:
(120)
Loss carryforward
Enacted tax rate
Deferred tax asset
Loss carryback
Temporary differences:
Fine paid
Loss contingency
Taxable loss
135
Current Future
Year Deductible
2017 Amounts
60
Loss contingency
Operating loss carryforward
Taxable income
Enacted tax rate
Deferred tax asset
Income tax payable
Income tax expense
Journal entry at the end of 2017
Ending balance (balance currently needed)
Less: beginning balance
Deferred tax asset:
Pretax accounting Income
Operating loss before income taxes
Requirement 2:
(in millions)
Less: Income tax benefit
Requirement 3:
Calculations
Future tax benefits
Tax refund from loss carryback
2014 2015
$75,000,000 $30,000,000
Additional Information:
Taxable Income
FORES CONSTRUCTION COMPANY
Given Data P16-10:
2016 pretax operating loss
EPA penalty included in 2016 loss
Accrued loss contingency included in 2016 loss
Enacted tax rate