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

The assignment will require the group to undertake research

The assignment will require the group to undertake research using the website of the Australian Stock Exchange (ASX) and/or the Company whose industry is Food, Beverage & Tobacco that you have chosen. Elder Ltd is the ap ...

Part a1000 word short essay about the nature of impairment

Part A: 1000 word short essay about the nature of "Impairment loss" and required disclosures including referencing.

Accounting for business decisions melbourne assignment-the

Accounting for Business Decisions Melbourne Assignment- The assignment will undertake research using the website of the Australian Stock Exchange (ASX) and/or the Company whose industry is Food, Beverage & Tobacco that y ...

Financial accounting assignment-part 1 - task detailsmonash

Financial Accounting Assignment- Part 1 - Task details: Monash Cow Ltd operates dairy farms across different locations of Victoria. Since the start of its operation in 1981, the firm's business has been rapidly growing a ...

Practice questionsin what circumstances would you recommend

Practice questions: In what circumstances would you recommend the use of the machine hour overhead absorption rate?

Horizontal and vertical analysisfor this assignment due in

Horizontal and Vertical analysis For this assignment, due in Module Four, you will submit both a horizontal and vertical analysis of Starbucks' accounts receivable, fixed assets, and debt financing. Use basic financial a ...

You may have to research more than 1 company to complete

You may have to research more than 1 company to complete the Key Assignment. Plan accordingly. The purpose of this Key Assignment is to get familiar with annual reports and to understand the financial implications of the ...

Taskin april 2016 the fair work ombusman released a report

Task In April 2016, the Fair Work Ombusman released a report on the findings of this inquiry on the 7 Eleven franchise network. The inquiry was prompted by allegations of systemic non-compliance with federal workplace la ...

Classifying costs in a service companya partial list of the

Classifying costs in a service company A partial list of the costs for Wisconsin and Minnesota Railroad, a short hauler of freight, follows. Classify each cost as either indirect or direct. For purposes of classifying ea ...

Provide a short conclusion on the calculations of variances

Provide a short conclusion on the calculations of variances in a cash budget.

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate