Accounting

Problem 1: California Surplus Inc. qualifies to use the installment- deals sanctify for value purposes and sold an investment on an installment basis. The underlying gain of $75000 was reported for financial reporting purposes in the suppress of time of sale. The installment period is 3 years; third base of the sale price is collected in 2012 and the rest in 2013. The value 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 $ 175,000 $ 175,000 fleeting deviance $ 75,000 $ 25,000 Income $ 250,000 $ 200,000 2013 (35% tax rate) Income before temporary going external $ 200,000 $ 200,000 Temporary contravention $ - $ 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. N o deferred income taxes existed at the begin! ning of 2012. 2) inform how the deferred taxes testament appear on the balance sheet at the end of for 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 whizz accountant shows the following info: On Jan 1, 2012,...If you want to concentrate a full essay, order it on our website: OrderCustomPaper.com

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