Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Sherrod inc reported pretax accounting income

09/01/2021 Client: saad24vbs Deadline: 2 Day

P16-7 Multiple differences; calculate taxable income; balance sheet classification


Sherrod, Inc. reported pretax accounting income of 76 million for 2011. The following information relates to differences between pretax accounting income and taxable income:


a. Income from installment sales of properties included in pretax accounting income in 2011 exceeded that reported for tax purposes by 3 million. The installment receivable account at year-end had a balance of 4 million (representing portions of 2010 and 2011 installment sales), expected to be collected equally in 2012 and 2013.


b. Sherrod was assessed a penalty of 2 million by the Environmental Protection Agency for violation of a federal law in 2011. The fine is to be paid in equal amounts in 2011 and 2012.


c. Sherrod rents its operating facilities but owns one asset acquired in 2010 at a cost of 80 million. Depreciation is reported by the straight-line method assuming a four-year useful life. On the tax return, deductions for depreciation will be more than straight-line depreciation the first two years but less than straight- line depreciation the next two years ($ in millions).




Income Statement Tax Returns Differences


2010 $20 $26 $(16)


2011 20 35 (15)


2012 20 12 8


2013 20 7 13


$80 $80 $0


d. Bad debt expense of 3 million is reported using the allowance method in 2011. For tax purposes the expense is deducted when accounts prove uncollectible (the direct write-off method): 2 million in 2011. At December 31, 2011, the allowance for uncollectible accounts was 2 million (after adjusting entries). The balance was 1 million at the end of 2010.


e. In 2011, Sherrod accrued an expense and related liability for estimated paid future absences of 7 million relating to the company’s new paid vacation program. Future compensation will be deductible on the tax return when actually paid during the next two years (4 million in 2012; 3 million in 2013).


f. During 2010, accounting income included an estimated loss of 2 million from having accrued a loss contingency. The loss is paid in 2011 at which time it is tax deductible.


Balances in the deferred tax asset and deferred tax liability accounts at January 1, 2011, were 1.2 million and 2.8 million, respectively. The enacted tax rate is 40% each year.


Requred:


1. Determine the amounts necessary to record income taxes for 2011 and prepare the appropriate journal entry.


2. What is 2011 net income?


3. Show how any deferred tax amounts should be classified and reported in the 2011 balance sheet.


E 17-10 Determine pension expense


Abbott and Abbott has a noncontributory, defined benefit pension plan. At December 31, 2011, Abbott and Abbott received the following information:


($ in the millions)


Projected Benefit Organization


Balance, January 1 $120


Service Cost 20


Interest Cost 12


Benefits paid (9)


Balance, December 31 $143


Plan Assets


Balance, January 1 $ 80


Actual return on plan assets 9


Contribution 2011 20


Benefits paid (9)


Balance, December 31 $100


The expected long-term rate of return on plan assets was 10%. There was no prior service cost and a negligible net loss- AOCI on January 1, 2011.


Required:


1. Determine Abbott and Abbott’s pension expense for 2011.


2. Prepare the journal entries record Abbott and Abbott’s pension, funding, and payments for 2011.


E 17-19 Record pension expense, funding, and gains and losses; determine account balances


Beale Management has noncontributory, defined benefit pension plan. On December 31, 2011 (the end of Beale’s fiscal year), the following pension-related data were available.


Projected Benefit Obligation ($ in millions)


Balance, January 1, 2011 480


Service Cost 82


Interest cost, discount rate, 5% 24


Gain due to changes in actuarial assumptions in 2011 (10)


Pension benefits paid (40)


Balance, December 31, 2011 536


Plan Assets


Balance, January 1, 2011 500


Actual return on plan assets 40


(Expected return on plan assets, 45)


Pension benefits paid (40)


Balance, December 31. 2011 570


January 1, 2011, balances:


Pension asset 20


Prior service cost –AOCI (amortization $8 per year) 48


Net gain-AOCI (any amortization over 15 years) 80


Required:


1. Prepare the 2011 journal entry to record pension expense.


2. Prepare the journal entry (s) to record any 2011 gains and losses.


3. Prepare the 2011 journal entries to record the contribution to plan assets, and benefit payments to retirees.


4. Determine the balances at December 31, 2011, in PBO, plan assets, the net gain-AOCI and prior service cost-AOCI and show how the balances changed during 2011. (t-accounts may be useful).


5. What amount will Beale report in its 2011 balance sheet as a net pension asset or net pension liability for the funded stat s of the plan?


P 17-6 Determine the PBO; plan assets; pension expense; two years


Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2011. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of return. A consulting firm, engaged as actuary, recommends 6% as the appropriate discount rate. The service cost is 150,000 for 2011 and 200,000 for 2012. Year-end funding is 160,000 for 2011 and 170,000 for 2012. No assumptions or estimates were revised during 2011.


Required:


Calculate each of the following amounts as of both December 31, 2011, and December 31, 2012.


1. Projected benefit obligation


2. Plan assets


3. Pension expense


4. Netpension asset or net pension liability



Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Best Coursework Help
Helping Hand
University Coursework Help
Top Essay Tutor
Homework Guru
Instant Assignments
Writer Writer Name Offer Chat
Best Coursework Help

ONLINE

Best Coursework Help

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$60 Chat With Writer
Helping Hand

ONLINE

Helping Hand

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$60 Chat With Writer
University Coursework Help

ONLINE

University Coursework Help

Hi dear, I am ready to do your homework in a reasonable price.

$62 Chat With Writer
Top Essay Tutor

ONLINE

Top Essay Tutor

I have more than 12 years of experience in managing online classes, exams, and quizzes on different websites like; Connect, McGraw-Hill, and Blackboard. I always provide a guarantee to my clients for their grades.

$65 Chat With Writer
Homework Guru

ONLINE

Homework Guru

Hi dear, I am ready to do your homework in a reasonable price and in a timely manner.

$62 Chat With Writer
Instant Assignments

ONLINE

Instant Assignments

Good day dear client, I am a full-time freelance writer with years of experience. My strongest strengths are strong dedication to duty, reliability, quality and excellence. I am going to do an outstanding job for you, kindly PM me and let us commence. Thank you so much in anticipation of your positive response. Thank you very much.

$55 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

For his statistics class experiment researcher - Pinnacle airlines flight 3701 - Disaster recovery - Visual paradigm association arrow - How to date a white girl junot diaz - Titration of acids and bases lab report discussion - Accounting excel project - Hag seed and tempest - Word project 1a flyer - Cole hersee solenoid diagram - Perception checking statement examples - Case study - Disney world daily revenue - Digital image processing solution manual - Week 7 - Mine and someone else's grammar - Community Nutrition Poster - Knightcapitalfunding google review - Chcccs023 pdf - As4 3501 6 carbon epoxy properties - Lord of the flies higher english - One page essay - Zero sequence ground fault protection monitors current in the - 972 464 7674 - Bending experiment lab report - Parenting with love and logic book review - Abortion Article Critique - 4 pages - Unsw 2nd hand bookshop - Tips on how to obtain a Coursework Writing Service - Course project Quality control - Emg output jack wiring - Drive-reduction motivation arises from: - PS490 Assignment 3 - Multinational capital budgeting questions and answers - Kellogg's india case study pdf - different roles within an agency. - Argumentative essay about driverless cars - The gangster we are all looking for chapter 4 summary - Discussion #4 - Looking for a supply chain professional who can write a paper for me. - The idea of value-based marketing requires firms to charge a price that - Worldpay dummy card details - Cpa australia singapore exam dates - Presentation on social change - Microwave waveguides and components - Chalk in water experiment - The Police Hierarchy - Bazley v tortorich case brief - Specification for highway works series 600 - What is the square root of 512 - Staffordshire university clinical psychology - Why does the afc curve continually decline - Microeconomics case study supply and demand - Unico 3642 air handler - How to prepare a cvp income statement - Kingston Bryce FAQ - Assignment 8 - Sound intensity over distance - I need someone to do all the rounds in my Capsim course. I will pay $20 per round. - Accounting - FIN330 Nike - Expert opinion persuasive technique - Hemo the magnificent worksheet answers - Hh - Four lens night vision - Facts about holden caulfield - The adventure of the speckled band conflict - Phantom profit - Experiment to find critical angle of glass - Bachelor of social work monash university - Sociological theory in the classical era 2nd edition pdf - NUR504- Religious, Cultural, Spiritual Beliefs, History Taking, Physical Exam, & Documentation Strategies - Dragon systems goldman sachs - Business Plan - Genogram narrative - Real world situations paper - 2 year old observation paper - Strange days on planet earth one degree factor - Research article - How many bricks in a linear meter - Many more happy returns of the day god bless you - Khalid mohammed abdul rahim net worth - Cisco ucs manager administration management guide - Deanne butchey - Philosophy101 - Which revision most effectively corrects the underlined sentence fragment - Week 4 discussion - Macbeth act 2 discussion questions answers - Chords & keys music colonial heights va - Customer segmentation and clustering using sas enterprise miner pdf - Virtualization ( cloud computing) - Nitrogen kick off calculation - Griffith university admission requirements - Cook door menu 2017 egypt - How to find the energy content in food - For the following c statement what is the corresponding mips - The espresso lane to global markets case study solution - Brisbane city council duplex - Forms of business organization with references - Nightingale tribute honoring departed nurses