Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Trinity co. reported taxable income in 2008 of $120 million. At December 31, 2008, reported amount of a few assets and liabilities in a financial statements differed from their tax basis as given below:

Assets                                                      Carrying Amount     Tax Basis
Current            
Accounts Receivable                                     $ 10 million          $ 12 million
Prepaid insurance                                            20 million              $0
Prepaid rent insurance                                       6 million              $0
Non current            
Buildings and equipment (net)                           360 million          280 million
Liabilities            
Current            
Liability- subscriptions received                          14 million              0
Long-term            
Liability- postretirement benefits                       594 million              0
Shareholders’ Equity            
Unrealized gain from recording investments             4 million             0

Available for sale at fair market value

Total deferred tax asset and deferred tax liability amounts at January 1, 2008, were $250 million and $40 million, respectively. Enacted tax rate is 40 % each year.

problems:

1) Find out the total deferred tax asset and deferred tax liability amounts at December 31, 2008.

2) Find out the increase (decrease) in a deferred tax asset and deferred tax liability accounts at December 31, 2008.

3) Find out the income tax payable currently for the year ended December 31, 2008.

4) Create the journal entry to record income taxes for 2008.

5) Illustrate how deferred tax amounts must be classified and reported in the 2008 balance sheet.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M99886

Have any Question? 


Related Questions in Accounting Basics

Assignment1 government entity ccr 2 government entity power

Assignment 1.) Government Entity CCR 2.) Government Entity Power Point presentation Refer to www.agacgfm.org for information on the CCR. A CCR is a 4 page document summarizing information and creating a presentation for ...

Milestone three guidelinesoverview the final project for

Milestone Three Guidelines Overview: The final project for this course is the creation of a portfolio consisting of a report and spreadsheets. You will be placed in a real-world scenario in which you will take the role o ...

Accounting information systemsfor this assignment research

Accounting Information Systems For this assignment, research the Internet or Strayer databases to locate a firm that was involved in a fraud and / or embezzlement case. Explain how the firm's accounting information syste ...

Conduct a cost analysis of gas versus electric vehicle find

Conduct a cost analysis of gas versus electric vehicle. Find the break-even point assuming gasoline is $3.00/gallon with an average of 22 miles per gallon that costs $25,000. Compared to an electric vehicle for $35,000 t ...

Qestion 1beginning inventory24 tires 61purchase6 tires

QUESTION 1. Beginning inventory........24 tires @ $61 Purchase.........6 tires @ $76 Sale.......17 tires @ $105 Requirements 1. Compute cost of goods sold and gross profit under FIFO. 2. Compute cost of goods sold and gr ...

Accounting for gov amp not for profit1 explain in 2-4

ACCOUNTING FOR GOV & NOT FOR PROFIT 1. Explain in 2-4 sentences the difference between government Agency funds and Fiduciary funds. 2. What information is or is not required to be reported in the RSI for pension plans un ...

Question 1 owners of business firms are the only people who

Question 1 Owners of business firms are the only people who need accounting information. Question 2  Requiring employees to take vacations is a weakness in the system of internal controls because it does not promote oper ...

Transfer pricing is the pricing of assets funds services

Transfer pricing is the pricing of assets, funds, services, etc., transferred among related organizations. Using online library resources, and the Internet, conduct research to discuss the transfer pricing regulations an ...

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around acquisition accounting to a real-world example. Requirements for the assignment: Each student will select ...

Problem 1pringle corporation has been authorized to issue

Problem 1: Pringle Corporation has been authorized to issue 23,300 shares of $100 par value, 8%, noncumulative preferred stock and 1,007,600 shares of no-par common stock. The corporation assigned a $4 stated value to th ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro