Question Details

(Solved) Part A Colorado Company has provided you the following information. Year 2014 2015 2016 2017 Taxable income $390,000 $320,000 $400,000 ($1,200,000)...


Please look at the attached assignment. My instructor says I have partial answers for Part A and Incorrect answers for Part B. The last tutor didnt catch anything. Please double check this time. Thanks!

Part A
Colorado Company has provided you the following information.
Year
2014
2015
2016
2017 Taxable income
$390,000
$320,000
$400,000
($1,200,000) Income tax rate
35%
37%
40%
40% Colorado Company has decided to use the loss carryback and carryforward provision as a
result of the year 2017 loss. The enacted tax rate remains at 40% after year 2017.
Colorado Company has determined that a valuation allowance is not necessary.
Prepare the journal entry on December 31, 2017 to record the carryback and carryforward
decision.
Year
201
7
201
5 Transaction NOL $320,000
-$880,000 201
6
$400,000
-$480,000 Net of Loss Unused carry forward
Enacted future tax
rate
Deferred tax 12/31/201
7
12/31/201 Tax
Rate Tax Paid Tax Refund $320,000
$320,000
$0 40% $128,000 $128,000 40% $0 $400,000
$400,000
$0 40% $160,000 $1,200,000 Net of Loss Date Taxable
Income $160,000
$288,000 Income tax refund 40% $480,000
40%
$192,000 Account Titles & Explanation
Income tax refund receivable
Income tax expense(carryback benefit)
Deferred tax asset J
E Debit Credit 288,000
288,000
192,000 7 Income tax expense(carryforward
benefit) 192,000 Part B
The Matrix Company began operations as of the beginning of 2015. During 2015, Matrix
reported GAAP (book) income before taxes of $789,500. For income tax purposes,
depreciation expense was $150,000; for GAAP (book) purposes, depreciation expense
was $74,000. Matrix accrued $900,000 of revenue for GAAP (book) purposes during
2015; $600,000 of the accrued revenue was taxable during 2015. Matrix earned interest
of $79,800 from a municipal bond investment during 2015. Matrix’s marginal income tax
rate is 40%. Matrix did not make any income tax payments during 2015.
a. Determine Matrix’s taxable income for the year ended December 31, 2015. Revenue
Less: Depreciation Tax Rate Book (GAAP)
$900,000
$74,000 Tax
$600,000
$150,000 Difference
$300,000
-$76,000 $826,000
40% $450,000
40%
$180,000 $376,000
40%
$150,400 Interest $79,800 Taxable Income $259,800 b. Prepare the 2015 year-end journal entry to record income tax expense.
Proof: 259800+150400=410,200 Date
12/31/2015 Account Titles &
Explanation
Income tax provision
Deferred tax liability
Income tax payable J
E Debit
$410,200 Credit
$150,400
$259,800

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 05, 2019

PRICE: $18

Solution~000200247680.zip (25.37 KB)

Buy this answer for only: $18

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 05, 2019

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now