Homework answers / question archive / Allmen Accountancy Scholarships Link to Apply for Von Allmen School of Accountancy Scholarships Eligibility Requirements: Deadline May 7 · Students must be an accounting major, currently enrolled full-time at the University of Kentucky, and have completed at least 45 credit hours but no more than 96 credit hours by the end of the Fall 2020 semester

Allmen Accountancy Scholarships Link to Apply for Von Allmen School of Accountancy Scholarships Eligibility Requirements: Deadline May 7 · Students must be an accounting major, currently enrolled full-time at the University of Kentucky, and have completed at least 45 credit hours but no more than 96 credit hours by the end of the Fall 2020 semester

Business

Share With

Allmen Accountancy Scholarships Link to Apply for Von Allmen School of Accountancy Scholarships Eligibility Requirements: Deadline May 7 · Students must be an accounting major, currently enrolled full-time at the University of Kentucky, and have completed at least 45 credit hours but no more than 96 credit hours by the end of the Fall 2020 semester. · Students must have completed a minimum of 6 accounting credit hours but no more than five upper division accounting courses as of the end of the Fall 2020 semester. · Students must have a minimum 3.5 cumulative GPA as well as a minimum 3.5 GPA for accounting course work as of the end of the Fall 2020 semester. · Students must be enrolled at the University of Kentucky in a minimum of three additional upper division accounting hours (or be enrolled in ACC 399 [internship course] or a full-time study abroad program) in the spring 2021 semester. · Students must be enrolled as a full-time accounting major at the University of Kentucky in a minimum of three upper division accounting hours or an ACC 399 (internship course) in the semester of the receipt of scholarship funds. LO 1 Copyright ©2019 John Wiley & Sons, Inc. 1 Review for Final Exam - requests • Chapter 19 • • • • • Chapter 23 • • • • • Pension worksheet (not on test) Prior Chapters • LO 1 Complete statement of cash flows Explain why adjustments are made Investing and financing sections Direct method calculations Chapter 20 • • Temporary and permanent differences Valuation allowance and loss carryforward Journal entries Effective tax rate (not on test) Diluted EPS Copyright ©2019 John Wiley & Sons, Inc. 2 Income Taxes • Chapter 19 Temporary and Permanent Differences LO 1 Copyright ©2019 John Wiley & Sons, Inc. 3 Accounting for Income Taxes Maximize LO 1 Minimize Copyright ©2019 John Wiley & Sons, Inc. 4 Types of Temporary Book-Tax Differences Table LO 2 Accrued for GAAP Deferred for GAAP Revenues Ex. Sales on Account – revenue for GAAP recorded before taxable -Subtract from GAAP to get taxable income -Add to taxable to get GAAP income -This creates a deferred tax liability. Ex. Unearned subscription revenue – revenue for GAAP recorded after it is taxable -Add to GAAP to get taxable income -Subtract from taxable to get GAAP income -This creates a deferred tax asset. Expenses Ex. Lawsuit Loss – expense for GAAP recorded before it is deductible for taxes -Add back to GAAP to get taxable income -Deduct from taxable to get GAAP income Ex. Prepaid Rent – expense for GAAP recorded after it is deductible for taxes -This creates a deferred tax asset. -This creates a deferred tax liability. -Deduct from GAAP to get taxable income -Add back to taxable to get GAAP income Copyright ©2019 John Wiley & Sons, Inc. 5 Temporary Differences (Revenues or gains are taxable after they are recognized in financial income - DTL) An asset (e.g., accounts receivable or investment) may be recognized for revenues or gains that will result in taxable amounts in future years. Examples: 1. Sales accounted for on the accrual basis for financial reporting purposes and on the installment (cash) basis for tax purposes. LO 2 Copyright ©2019 John Wiley & Sons, Inc. 6 Temporary Differences (Expenses or losses are deductible after they are recognized in financial income - DTA) A liability (or contra asset) may be recognized for expenses or losses that will result in deductible amounts in future years. Examples: 1. Product warranty liabilities. 2. Litigation accruals. LO 2 Copyright ©2019 John Wiley & Sons, Inc. 7 Temporary Differences (Revenues or gains are taxable before they are recognized in financial income - DTA) A liability may be recognized for an advance payment for goods or services to be provided in future years. For tax purposes, the advance payment is included in taxable income upon the receipt of cash. Future sacrifices to provide goods or services (or future refunds to those who cancel their orders) that settle the liability will result in deductible amounts in future years. Examples: 1. Subscriptions received in advance. 2. Advance rental receipts. LO 2 Copyright ©2019 John Wiley & Sons, Inc. 8 Temporary Differences (Expenses or losses are deductible before they are recognized in financial income - DTL) The cost of an asset may have been deducted for tax purposes faster than it was expensed for financial reporting purposes. Amounts received upon future recovery of the amount of the asset for financial reporting (through use or sale) will exceed the remaining tax basis of the asset and thereby result in taxable amounts in future years. Examples: 1. Depreciable property, depletable resources, and intangibles. 2. Prepaid expenses that are deducted on the tax return in the period paid. LO 2 Copyright ©2019 John Wiley & Sons, Inc. 9 Permanent Differences Items are recognized for financial reporting purposes but not for tax purposes. Examples: 1. Fines and expenses resulting from a violation of law. or: Items are recognized for tax purposes but not for financial reporting purposes. LO 2 Copyright ©2019 John Wiley & Sons, Inc. 10 Practice question 1 Link to Google forms 1. Blue Co. has pre-tax financial income of $15,000 in 2021. Blue Co. has one temporary difference in the amount of $10,000 from prepaid expenses that are deductible for tax purposes. The temporary difference will reverse in equal parts in the next two years (2022 and 2023). The tax rate is 20%. What is the amount of income tax payable in 2021? LO 1 Copyright ©2019 John Wiley & Sons, Inc. 11 Income Taxes • Chapter 19 Journal Entries LO 1 Copyright ©2019 John Wiley & Sons, Inc. 12 Journal Entry with Temporary Difference Yr 1 Comparison of Differences 2020 Income tax expense (GAAP) Income tax payable (IRS) Difference 2021 2022 Total $14,000 $14,000 $14,000 $42,000 8,000 18,000 16,000 42,000 $6,000 $(4,000) $(2,000) $0 Journal entry 2020. Income Tax Expense Income Taxes Payable Deferred Tax Liability LO 1 Copyright ©2019 John Wiley & Sons, Inc. 14,000 8,000 6,000 13 Journal Entry with Temporary Difference Yr 2 Comparison of Differences 2020 2021 2022 Income tax expense (GAAP) $14,000 $14,000 $14,000 $42,000 8,000 18,000 16,000 42,000 $6,000 $(4,000) $(2,000) Income tax payable (IRS) Difference Total $0 Journal entry 2021. Income Tax Expense Deferred Tax Liability Income Tax Payable LO 1 Copyright ©2019 John Wiley & Sons, Inc. 14,000 4,000 18,000 14 Valuation Allowance Journal LO 1 Copyright ©2019 John Wiley & Sons, Inc. 15 Loss Carryforward Journal Entry Yr 1 Carryforward without Valuation Allowance Assume that Groh Inc. has no temporary or permanent differences. Groh experiences the net operating loss of $200,000 in 2020 and takes advantage of the carryforward provision. In 2020, the company records the tax effect of the $200,000 loss carryforward, assuming that the enacted future tax rate is 20 percent, as follows. Deferred Tax Asset 40,000 Income Tax Expense (Loss Carryforward) LO 3 Copyright ©2019 John Wiley & Sons, Inc. 40,000 16 Loss Carryforward Journal Entry Yr 2 Computation and Journal Entry Income Tax Expense Deferred Tax Asset Income Tax Payable LO 3 Copyright ©2019 John Wiley & Sons, Inc. 50,000 40,000 10,000 17 Practice question 2 Link to Google forms 2. Blue Co. has a tax rate of 20%. In 2020 Blue Co. has a net operating loss of $20,000 and they use the carry forward provision. What are the debited and credited accounts and amounts for Blue’s 2020 journal entry for income taxes? LO 1 Copyright ©2019 John Wiley & Sons, Inc. 18 Cash Flows • Chapter 23 Complete statement of cash flows LO 1 Copyright ©2019 John Wiley & Sons, Inc. 19 Complete Cash Flow Problem Blue Co, Statement of Cash Flows, Year ended Dec 31, 2020 (Indirect Method) Cash Flows from operating activities Net Income Adjustments to reconcile to net cash: Depreciation expense Gain on sale of investments inventory accounts payable accounts receivable accrued liabilities Net cash provided by operating activities Cash flows from investing activities: Net cash provided by investing activities Cash flows from financing Net cash used by financing activities Net increase in cash Cash at beginning of period Cash at end of period LO 1 Copyright ©2019 John Wiley & Sons, Inc. 20 Cash Flows • Chapter 23 Explain why adjustments are made LO 1 Copyright ©2019 John Wiley & Sons, Inc. 21 Indirect Method—Adjustments Adjustments Needed to Determine Net Cash Flow from Operating Activities. LO 2 Copyright ©2019 John Wiley & Sons, Inc. 22 Examples of reason for adjustment • Depreciation expense • • Increase in prepaid expenses • LO 1 Added to net income to arrive at cash flows from operating activities because it has been subtracted from net income but no cash was paid (non-cash expense) Subtracted from net income because cash has already been paid but it hasn’t been taken out of net income yet Copyright ©2019 John Wiley & Sons, Inc. 23 Cash Flows • Chapter 23 Investing and financing sections LO 1 Copyright ©2019 John Wiley & Sons, Inc. 24 Classification of Cash Flows Investing and Financing Cash Flows LO 1 Copyright ©2019 John Wiley & Sons, Inc. 25 Investing and Financing Cash Flows 3 steps: 1. Identify investing activities from the list 2. Determine if inflow or outflow (+ or - ) 3. Calculate 1. 1.Sale of land $96,000 4. Purchase of equipment $209,000 2.Purchase of inventory $430,500 5. Issuance of common stock $176,000 3.Purchase of treasury stock $35,000 6. Purchase of available-for-sale debt securities $27,000 Compute the amount Blue should report as net cash provided (used) by investing activities in its 2020 statement of cash flows. Net cash used by investing activities: __________96,000-209,000-27,000 = -140,000 (140,000 cash outflow) LO 1 Copyright ©2019 John Wiley & Sons, Inc. 26 Practice question 3 Link to Google forms 3. Blue Co. had the following activities affecting cash in 2020. Calculate the amount of net cash flow from financing activities and indicate whether it is cash provided or cash used. • Purchased equipment $10,000 • Paid dividend $40,000 • Issued bonds $25,000 • Sold land $30,000 • Sold investments $5,000 LO 1 Copyright ©2019 John Wiley & Sons, Inc. 27 Cash Flows • Chapter 23 Direct method calculations LO 1 Copyright ©2019 John Wiley & Sons, Inc. 28 Net Cash Flow from Operating Activities— Direct Method Formulas Sales is the starting point for cash received from customers. An adjustment is made if the sales were on account (not cash). We subtract an increase in sales on account because that increase represents a non-cash increase in sales. LO 3 Copyright ©2019 John Wiley & Sons, Inc. 29 Net Cash Flow from Operating Activities— Direct Method Formulas For these two we start with the related expense, we make an adjustment for cash paid that hasn’t been recorded in the expense (inventory and prepaid expenses) and then make an adjustment for expenses for which cash hasn’t been paid (accounts payable and accrued expenses). LO 3 Copyright ©2019 John Wiley & Sons, Inc. 30 Net Cash Flow from Operating Activities— Direct Method Example 41. (HW Q5) Blue Corporation had January 1 and December 31 balances as follows. 1/1/20 12/31/20 COGS Inventory $52,500 $62,000 Add: Inc. in inventory Accounts payable 36,500 40,500 Purchases Deduct: Inc. in AP For 2020, cost of goods sold was $246,500. 246,500 9,500 256,000 4,000 $252,000 Compute Blue’s 2020 cash payments to suppliers. _________$252,000_______________ LO 3 Copyright ©2019 John Wiley & Sons, Inc. 31 Practice question 4 Link to Google forms 4. Blue Co. had the following information for 2021. Prepaid expenses decreased by $10,000. Accrued expenses payable increased by $20,000. Operating expenses were $50,000. Using the direct method, what is the amount of cash payments for operating expenses? LO 1 Copyright ©2019 John Wiley & Sons, Inc. 32 EPS Diluted EPS LO 1 Copyright ©2019 John Wiley & Sons, Inc. 33 Example — Treasury-Stock Method Illustration: Zambrano Company’s net income for 2020 is $40,000. The only potentially dilutive securities outstanding were 1,000 options issued during 2019, each exercisable for one share at $8. None has been exercised, and 10,000 shares of common were outstanding during 2020. The average market price of the stock during 2020 was $20. Instructions a. Compute diluted earnings per share. LO 5 Copyright ©2019 John Wiley & Sons, Inc. 34 Treasury-Stock Method Incremental Share Calculation Proceeds if shares issued (1,000 × $8) Purchase price for treasury shares Shares assumed purchased Shares assumed issued Incremental share increase LO 5 Copyright ©2019 John Wiley & Sons, Inc. $8,000 ÷ $20 400 1,000 600 35 Treasury-Stock Method Diluted EPS $40,000 + $40,000 = $3.77 = 10,000 Basic EPS = $4.00 LO 5 + 600 10,600 Options Copyright ©2019 John Wiley & Sons, Inc. 36 Practice question 5 Link to Google forms 5. Blue Co. has net income of $10,000 and weighted average shares outstanding of 2,000. Blue Co. also has 6,000 options that were issued the prior year. These options are exercisable for 1 share each at a price $2. The average market price of the stock for the year is $4. What is the diluted earnings per share? LO 1 Copyright ©2019 John Wiley & Sons, Inc. 37 Study Guide for Final Exam*: Multiple Choice: Ch 19 – 10 questions, Ch 23 – 8 questions, Ch 20 – 4 questions, Other – 4 questions Fill-in-the-blank calculation: Ch 19 – 3 problems, Ch 23 – 4 problems, Ch 20 – 3 problems, Other – 2 problems Journal Entry/Long Problems: Ch 19 – 3 problems, Ch 23 – 1 problems, Ch 20 – 1 problems, Other – 0 problems Percent of Final Exam grade by section: Ch 19 – 37%, Ch 23 – 37%, Ch 20 – 16% problems, Other – 10% Chapter 19: • • • • Know the difference between taxable income and GAAP income and the implications for income tax expense and income tax payable. Know what causes temporary and permanent differences between taxable income and GAAP income and how they are accounted for. Know the transactions that cause deferred tax assets and deferred tax liabilities and their presentation on the financials. Know the accounting for and the purpose of a valuation allowance account. Journal Entries • Complete journal entries for income taxes, including when there is a loss and/or a valuation allowance Chapter 23: • • • Know the adjustments made in the operating activities section of a statement of cash flows using the indirect method and know why they are made. Know the direct method calculations for cash receipts from customers, cash payments to suppliers, and cash payments for operating expenses. Be able to identify financing and investing activities and calculate cash provided or used. Journal Entries/ Long Problem • Complete a statement of cash flows using the indirect method. Chapter 20: • • • Know the difference between defined contribution plans and defined benefit plans. Know the components of pension expense. Broadly, know the treatment for prior service costs and unexpected gains and losses from actuarial assumptions. Prior Chapters: • • • Multiple choice: o conceptual-type question about revenue, understand what constitutes as an adjusting entry Calculate diluted EPS for a firm with options or warrants. Know how total stockholders’ equity is calculated. *This study guide is not comprehensive. For this guide, I listed items that I expect to be particularly challenging. To prepare for the exam, I suggest that you look over all the material, and not just what is listed here. 2 pts X CIO Question 27 Blue Co. has pre-tax financial income of $100,000 in 2021. The two differences between taxable income and pre-tax financial income occurring in 2021 are a $30,000 temporary difference due to accelerated depreciation for tax purposes but not GAAP, and a $10,000 fine to the government that is recorded as an expense for GAAP but is not deductible for tax purposes. What is the amount of taxable income for Blue Co.in 2021? Edit View Insert Format Tools Table Š v Ev 3 | : Bv BI U Ave T²v | 12pt Paragraph O words © ? Question 28 2 pts Blue Co. had taxable income of $200,000 and pretax financial income of $400,000. The tax rate is 25%. What is the amount of income tax payable? Edit View Insert Format Tools Table INSIGNIA →XCI € IS O words Question 29 2 pts Blue Co. had the following balances in 2021: Common stock: $30,000 Paid-in capital in excess of par - Common Stock: $80,000 SIA 15 6-> XC@ 2 pts Question 29 D Blue Co. had the following balances in 2021: Common stock: $30,000 Paid-in capital in excess of par - Common Stock: $80,000 Retained earnings: $10,000 Treasury stock: $20,000 Calculate the balance of total stockholders' equity: Edit View Insert Format Tools Table 12pt Paragraph Paragraph | B I U ALTO DE ~ ? D | | ? ? | ? Owords Question 30 2 pt 2 pts 6- X CIO Question 37 Blue Co. had the following balance at Dec. 31, 2021. Projected benefit obligation $275,000 Plan assets at fair value 150,000 Accumulated OCI (PSC) 200,000 What is the amount for pension liability that should be reported on Blue's balance sheet at Dec. 31, 2021? Edit Vicw Insert Format Tools Table 12ptParagraph B I VA 2 TUD ~~| ||: ? *** i o words | Question 38 2 pts Blue Co. had net cash provided by operating activities of $250,000, net cash provided by investing activities of $400,000, and net cash used by financing activities of $150,000 in 2021. At January 1, 2021, the cash balance was $180,000. What was the cash balance on December 31, 20212 INSIDE 2 pts X CIO Question 27 Blue Co. has pre-tax financial income of $100,000 in 2021. The two differences between taxable income and pre-tax financial income occurring in 2021 are a $30,000 temporary difference due to accelerated depreciation for tax purposes but not GAAP, and a $10,000 fine to the government that is recorded as an expense for GAAP but is not deductible for tax purposes. What is the amount of taxable income for Blue Co.in 2021? Edit View Insert Format Tools Table Š v Ev 3 | : Bv BI U Ave T²v | 12pt Paragraph O words © ? Question 28 2 pts Blue Co. had taxable income of $200,000 and pretax financial income of $400,000. The tax rate is 25%. What is the amount of income tax payable? Edit View Insert Format Tools Table INSIGNIA →XCIO 1 + O words ! ? 2 pts Question 28 $. Blue Co. had taxable income of $200,000 and pretax financial income of $400,000. The tax rate is 25%. What is the amount of income tax payable? Edit View Insert Format Tools Table 12pt Paragraph B IV AeTv B I VAT? BO OB EVE : ? O words 7 Question 29 2 pts Blue Co. had the following balances in 2021: Common stock: $30,000 Paid-in capital in excess of par - Common Stock: $80,000 CAN 15 6 -> XC@ 2 pts Question 29 D Blue Co. had the following balances in 2021: Common stock: $30,000 Paid-in capital in excess of par - Common Stock: $80,000 Retained earnings: $10,000 Treasury stock: $20,000 Calculate the balance of total stockholders' equity: Edit View Insert Format Tools Table 12pt Paragraph Paragraph | B I U ALTO DE v v v | | ?y ?y 2 || 8 ? O words Question 30 2 pt 2 pts → X CIO Question 30 Blue Co. had taxable income of $300,000 in 2021. Blue had a $100,000 temporary difference between GAAP and tax basis due to prepaid rent collected. The tax rate is 20%. What is the amount of income tax expense? Edit View Insert Format Tools Table 12pt v Paragraph v BI U ALTv Ovo ? Owords < .: ? Question 31 2 pts Blue Co. had the following amounts regarding its pension expense for the 2021: -Service cost: $425 -Interest on P.B.O.: 800 - Return on plan assets: 225 -Amortization of prior service cost: 50 Compute Blue's pension expense: 2 pts → XC@ Question 32 Given the following activities for Blue Co. in 2020, calculate the amount of the net cash flow from financing activities and indicate whether it is cash provided or cash used: - Issued bonds for $200,000 -Purchased equipment for $40,000 -Sold investment securities for $15,000 - Payment of cash dividend $25,000 Edit View Insert Format Tools Table BI U A&Tev OV E B EES 12pt Paragraph ? 123 O O words Question 33 2 pts Blue Co. had pension plan assets of $150,000 on Jan 1, 2020 and pension plan assets of $175,000 on Dec. 31, 2020. During the year, contributions to the pension fund were $80,000, and bene?ts paid were $75,000. Compute the actual amount of return on plan assets: SINO 6 →XCIO 2 pts Question 31 Blue Co. had the following amounts regarding its pension expense for the 2021: -Service cost: $425 -Interest on P.B.O.: 800 - Return on plan assets: 225 -Amortization of prior service cost: 50 Compute Blue's pension expense: Edit View Insert Format Tools Table ?? 12pt v Paragraph Paragraph v B I U Β Ι Ο Α ν 2 ev Tv Tv O OY ?~||?? ? © 0 words < -XC T ? 2 pts Question 33 , Blue Co. had pension plan assets of $150,000 on Jan 1, 2020 and pension plan assets of $175,000 on Dec. 31, 2020. During the year, contributions to the pension fund were $80,000, and benefits paid were $75,000. Compute the actual amount of return on plan assets: Edit View Insert Format Tools Table 2 Tv2 v EVS 12pt v Paragraph B I VA : ? O words < Question 34 2 pts Blue Company has net income of $100,000 and weighted average shares outstanding of 10,000. Blue also has 1,000 options that were issued the prior year. These options are exercisable for 1 share each at a price of $5. The average market price of the stock for the year was $10. What is the INSIGNIA --> XC 2 pts Question 34 Blue Company has net income of $100,000 and weighted average shares outstanding of 10,000. Blue also has 1,000 options that were issued the . $ prior year. These options are exercisable for 1 share each at a price of $5. The average market price of the stock for the year was $10. What is the diluted earnings per share for Blue Company? If antidilutive, just write: "antidilutive". Edit View Insert Format Tools Table A vev Tv v A B | Ev Ev 3 : 12ptParagraph Paragraph B I U ? ch ? O words XCIO 2 pts Question 35 Blue Co. has the following information for 2021: Inventory increased by $40,000, accounts payable increased by $20,000, and cost of goods sold was $110,000. What is the direct method cash flow calculation of cash payments to suppliers? Edit View Insert Format Tools Table 12pt v Paragraph v B I U AT? ? g @ Ev S : ? 0 words : Question 36 2 pts Given the following activities for Blue Co. in 2020, calculate the amount of the net cash flow from investing activities and indicate whether it is cash provided or cash used: - Issued bonds for $200,000 -Purchased equipment for $40,000 Sold investment securities for $15,000 -Payment of cash dividend $25,000 SIEN -> XCIO 2 pts Question 36 Given the following activities for Blue Co. in 2020, calculate the amount of the net cash flow from investing activities and indicate whether it is cash provided or cash used: -Issued bonds for $200,000 -Purchased equipment for $40,000 -Sold investment securities for $15,000 -Payment of cash dividend $25,000 Edit View Insert Format Tools Table ga .. EVS Ave ev T²v | 12pt Paragraph Paragraph B I U Owords /o Question 37 2 pts 2 pts 6- X CIC Question 37 Blue Co. had the following balance at Dec. 31, 2021. Projected benefit obligation $275,000 Plan assets at fair value 150,000 Accumulated OCI (PSC) 200,000 What is the amount for pension liability that should be reported on Blue's balance sheet at Dec. 31, 2021? Edit Vicw Insert Format Tools Table 12pt Paragraph B I VATUD | 5 5 2 | ? *** o words | Question 38 2 pts Blue Co. had net cash provided by operating activities of $250,000, net cash provided by investing activities of $400,000, and net cash used by financing activities of $150,000 in 2021. At January 1, 2021, the cash balance was $180,000. What was the cash balance on December 31, 20212 INTERES 2 pts → XC@ Question 38 Blue Co. had net cash provided by operating activities of $250,000, net cash provided by investing activities of $400,000, and net cash used by , financing activities of $150,000 in 2021. At January 1, 2021, the cash balance was $180,000. What was the cash balance on December 31, 2021? Edit View Insert Format Tools Table LEEV 12pt Paragraph v I | ! B I U Altiva O words P Question 39 6 pts Complete the following journal entries. Be sure sure to label debited and credited accounts and amounts. If you do not know the amount, try to write the correct account names for partial credit. Blue Co. has pre-tax financial income in 2020 of $400,000 and one temporary difference between the GAAP and tax basis that is from a $100,000 expense that is deductible for tax purposes in 2020 and will reverse in equal parts over the next two years. In 2021, Blue had pre-tax financial income of $200,000. Blue's tax rate is 25%. Complete journal entries for income taxes in 2020 and 2021. * Owords O words 6- X CIC 1 ? 6 pts Question 39 Complete the following journal entries. Be sure sure to label debited and credited accounts and amounts. If you do not know the amount, try to write the correct account names for partial credit. Blue Co. has pre-tax financial income in 2020 of $400,000 and one temporary difference between the GAAP and tax basis that is from a $100,000 expense that is deductible for tax purposes in 2020 and will reverse in equal parts over the next two years. In 2021, Blue had pre-tax financial income of $200,000. Blue's tax rate is 25%. Complete journal entries for income taxes in 2020 and 2021. Edit View Insert Format Tools Table | Ι Ο B I V Ave Tv O BE EV | 12pt v Paragraph ? + O words Question 40 6 pts INSIGNIA 4 pts → XCO Question 41 Complete the following journal entries. Be sure sure to label debited and credited accounts and amounts. If you do not know the amount, try to write the correct account names for partial credit. Blue Co. recorded a deferred tax asset for $50,000 in 2020. At the end of 2020 the balance of the deferred tax asset on the balance sheet grew to $100,000. Blue believes that it is more likely than not that it will not be able to realize the tax benefits of $20,000 of the deferred tax asset. Blue's tax rate is 20%. The journal entry for income taxes has already been done. Complete the journal entry for the valuation allowance. Edit View Insert Format Tools Table A E | | Ev Ev 3 : GO 12ptv Paragraph | BI ! Β Ι Ο Αν 2. Τον ? O words Question 42 4 pts Complete the following journal entries. Be sure sure to label debited and credited accounts and amounts. If you do not know the amount, try to write the correct account names for partial credit. Blue Co. reported pension expense of $150,000 and contributed $80,000 in 2020. Prepare the journal entry for Blue's recording of pension X C 0 6 pts Question 40 . , Complete the following journal entries. Be sure sure to label debited and credited accounts and amounts. If you do not know the amount, try to write the correct account names for partial credit. Blue Co, has no temporary or permanent differences and a tax rate of 20%. In 2020, Blue has a net operating loss of $100,000 and uses the carryforward provision. In 2021, Blue has taxable income of $110,000 and uses the benefits of the carryforward. Complete journal entries for income taxes in 2020 and 2021. Edit View Insert Format Tools Table 12pt v Paragraph v B I Β Ι Ο A BEEV 3 : ev T²v av ? *** O words ! Question 41 4 pts omplete the following journal entries. Be sure sure to label debited and credited accounts and amounts. If you do not know the amount, try to rite the correct account names for partial credit. Deco recorded a deferred tay xcelfa 2020 At the end the balance of the deferred tavascet on the balance sheet crew INSIGNIA EXC 4 pts Question 42 Complete the following journal entries. Be sure sure to label debited and credited accounts and amounts. If you do not know the amount, try to write the correct account names for partial credit. Blue Co. reported pension expense of $150,000 and contributed $80,000 in 2020. Prepare the journal entry for Blue's recording of pension expense and funding assuming there is no OCI.