Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Corning Howell reported taxable income in 2009 of $120 million. At December 31, 2009, reported amount of some assets and liabilities in financial statements differed from their tax basis as listed 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, 2009, were $250 million and $40 million, respectively. Enacted tax rate is 40 % each year.

1. Find out total deferred tax asset and deferred tax liability amounts at December 31, 2009.

2. Find out the increase (decrease) in the deferred tax asset and deferred tax liability accounts at December 31, 2009.

3. Find out the income tax payable currently for the year ended December 31, 2009.

4 .Make the journal entry to record income taxes for 2009.

5. Illustrate how deferred tax amounts must be categorised and reported in 2009 balance sheet.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M917406

Have any Question? 


Related Questions in Accounting Basics

Accountingimagine that you are a consultant working on a

Accounting Imagine that you are a consultant working on a special project to help a company determine techniques that it can use in order to calculate the fair value of investments. From the e-activity, prepare a report ...

Individual internal accountants report to managementyou are

Individual Internal Accountants Report to Management You are the internal accountant at a company that is preparing for an upcoming government contract bid. The management in your company is deciding if it is necessary f ...

Taskas part of the planning process for your new accounting

TASK As part of the planning process for your new accounting information system, your manager has asked that you prepare flowcharts. This graphic presents the flow of information through the accounting cycles. • Using th ...

Excel spreadsheet and 1-2 pagesconsider the following

Excel Spreadsheet and 1-2 pages Consider the following scenario: Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid ...

Question 1ryan withdrew cash from the business to pay his

Question 1 Ryan withdrew cash from the business to pay his personal cell phone bill. The expanded accounting equation changes include __________. A. increase in both cash and withdrawal B. decrease in both cash and withd ...

Assignmentxyz corporation published the following financial

Assignment XYZ Corporation published the following financial statements at the end of the year: Assume the following: All discretionary accounts that are influenced by the policy decisions are identified by ** in the abo ...

Abc stock has a share price of 150 today all rates of

ABC stock has a share price of $150 today. All rates of interest are 3% per annum on a continuously compounded basis. A one-year European call option on one share of stock struck at $147 is worth $15. Finally, ABC is sch ...

Question 1based upon the narrative describing the case what

Question 1: Based upon the narrative describing the case, what cultural element (per Ferraro) was most likely a major contributing factor to the accident? Question 2: If you were brought to the investigation, what recomm ...

1 you are the manager of a payroll system your company is

1. You are the manager of a payroll system. Your company is going to replace the legacy payroll system with a more robust, Web-based version. Suggest two approaches that would minimize downtime and interruption to the pa ...

Culturally diverse individuals are effective workerssuppose

Culturally Diverse Individuals Are Effective Workers Suppose you work as a human resource (HR) executive at Total Solutions, Inc., a culturally and geographically diverse organization. A recent government study on human ...

  • 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