Accounting

Problem 1: California Surplus Inc. qualifies to use the installment- deals disposition for value purposes and sold an investment on an installment basis. The built-in gain of $75000 was reported for financial reporting purposes in the decimal point of time of sale. The installment period is 3 years; triplet of the sale price is collected in 2012 and the rest in 2013. The impose rate was 35% in 2012, and 30% in 2013 and 30% in 2014. The accounting and tax data is shown below.

pecuniary scoreTax Return 2012 (40% tax rate) Income before temporary dispute $ 17 5,000 $ 175,000 makeshift deviance $ 75,000 $ 25,000 Income $ 250,000 $ 200,000 2013 (35% tax rate) Income before temporary going off $ 200,000 $ 200,000 Temporary going away $ - $ 25,000 Income $ 200,000 $ 225,000 2014 (35% tax rate) Income before temporary difference $ 180,000 $ 180,000 Temporary difference $ - $ 25,000 Income $ 180,000 $ 205,000 Required: 1)Prepare the journal entries to personality the income tax expense, deferred income taxes, and the income taxes payable for 2012, 2013, and 2 014. No deferred income taxes existed at the! beginning of 2012. 2) inform how the deferred taxes leave behind appear on the balance sheet at the terminal of from each one year. (Assume Installment Accounts Receivable is classified as a current asset.) 3)Show the income tax expense function of the income statement for each year, beginning with Income before income taxes. ? Problem 2: The Ambrosia Corporations persist accountant shows the following info: On Jan 1, 2012,...If you want to rile a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper