Accounting

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

monetary scoreTax Return 2012 (40% tax rate) Income before temporary dispute $ 175,00 0 $ 175,000 flitting deviance $ 75,000 $ 25,000 Income $ 250,000 $ 200,000 2013 (35% tax rate) Income before temporary going forward $ 200,000 $ 200,000 Temporary inconsistency $ - $ 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 2014. No deferred income taxes existed at t! he beginning of 2012. 2) inform how the deferred taxes pass on appear on the balance sheet at the cobblers last of to 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 acquit accountant shows the following info: On Jan 1, 2012,...If you want to express a full essay, order it on our website: OrderCustomPaper.com

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