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

Accounting paper assignment start-up budgetingfor this

Accounting Paper Assignment: Start-up Budgeting For this assignment, you will decide what type of budget to implement for a start-up company. Write a three to four page paper in which you: 1. Summarize the type of manufa ...

What are the effects on equitiesfinancial statement effect

What are the effects on equities? Financial Statement Effect of Equity Securities Presented below is a situation involving equity securities: An equity security, whose fair value is currently less than cost, is classifie ...

Auditing and ethical practice and auditing and ethics

Auditing and Ethical Practice and Auditing and Ethics Assessment Task The object of this assignment is to assist students to develop critical analysis skills in relation to auditor independence and issues in accepting au ...

Assignmentto write discussion post min 350 words for each

Assignment To write discussion post. Min 350 words for each task. Do not use any direct quotes and/or cut and pasted information (i.e. your discussion is to be 100% your thoughts, ideals and insights). A minimum 350 word ...

Early morning on a bright day in mid-january 2009 james d

Early morning on a bright day in mid-January 2009, James D. White, CEO of Jamba Juice, was driving down highway 580 headed to Jamba Juice's Emeryville, California, headquarters. Unfortunately, today, White could not enjo ...

Problem -a list of transactions appears below indicate

Problem - A list of transactions appears below. Indicate which accounting elements of the business are affected by placing in the respective columns the amount and the + (increasing) - (decrease) sign or NA, if the eleme ...

Question 1under the allowance method bad debt expense is

Question 1 Under the allowance method, Bad Debt Expense is recorded A. as an estimate. B. when an individual account is written off. C. several times during the year as needed. D. None of the above Question 2 Which amoun ...

Assessment one - business research report proposal initial

Assessment One - Business Research Report Proposal: Initial Research Proposal The initial research proposal will consist of the following SIX (6) items: 1. Identify a business research topic 2. Define the research questi ...

Please be sure to show all of your work and calculations1

Please be sure to show all of your work and calculations. 1. From the below information, calculate the final balance to be carried forward in your check stubs as of the end of October. Oct. 1 beginning balance $1,200.50 ...

Consumers choices are prey to subtle discrepancies that

Consumers' choices are prey to subtle discrepancies that arise in cognitive accounting. Learning how and when you are prey to these discrepancies is an important step in improving your decision making. As the readings fo ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen