Question: Based on the facts and results of
Based on the facts and results of Problems 30-36, provide the income tax footnote rate reconciliation for Relix.
Data from Problem 30:
Relix, Inc., is a domestic corporation with the following balance sheet for book and tax purposes at the end of the year. Based on this information, determine Relix's net deferred tax asset or net deferred tax liability at year-end. Assume a 21% Federal corporate tax rate and no valuation allowance.
Data from Problem 31:
Based on the facts and results of Problem 30 and the beginning-of-the year book-tax basis differences listed below, determine the change in Relix's deferred tax assets for the current year.
Data from Problem 32:
Based on the facts and results of Problem 30 and the beginning-of-the-year book-tax basis differences listed below, determine the change in Relix's deferred tax liabilities for the current year.
Data from Problem 33:
Based on the facts and results of Problems 30-32, determine Relix's change in net deferred tax asset or net deferred tax liability for the current year. Provide the journal entry to record this amount.
Data from Problem 34:
In addition to the temporary differences identified in Problems 30-33, Relix reported two permanent differences between book and taxable income. It earned $2,375 in tax-exempt municipal bond interest, and it incurred $780 in nondeductible business meals expense. Relix's book income before tax is $4,800. With this additional information, calculate Relix's current tax expense.
Data from Problem 35:
Provide the journal entry to record Relix's current tax expense as determined in Problem 34.
Data from Problem 36:
Based on the facts and results of Problems 30-35, calculate Relix's total provision for income tax reported in its financial statements, and determine its book net income after tax.
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Таx Debit/(Credit) Вook Debit/(Credit) Assets Cash $ 500 $ 500 Accounts receivable 8,000 8,000 Buildings 750,000 750,000 Accumulated depreciation (450,000) (380,000) Furniture & fixtures 70,000 70,000 Accumulated depreciation (46,000) $332,500 (38,000) $410,500 Total assets Liabilities Accrued litigation expense Note payable Total liabilities ($ 50,000) (78,000) ($128,000) -0- (78,000) ($ 78,000) Stockholders' Equity Paid-in capital Retained earnings ($ 10,000) (244,500) ($332,500) ($ 10,000) (272,500) ($410,500) Total liabilities and Stockholders' Equity Beginning of Year Accrued litigation expense $34,000 $34,000 X 21% $ 7,140 Subtotal Applicable tax rate Gross deferred tax Asset Beginning of Year ($57,000) Building-accumulated depreciation Furniture & fixtures-accumulated depreciation (4,200) ($61,200) X 21% Subtotal Applicable tax rate Gross deferred tax liability ($12,852) Таx Debit/(Credit) Вook Debit/(Credit) Assets Cash $ 500 $ 500 Accounts receivable 8,000 8,000 Buildings 750,000 750,000 Accumulated depreciation (450,000) (380,000) Furniture & fixtures 70,000 70,000 Accumulated depreciation (46,000) $332,500 (38,000) $410,500 Total assets Liabilities Accrued litigation expense Note payable Total liabilities ($ 50,000) (78,000) ($128,000) -0- (78,000) ($ 78,000) Stockholders' Equity Paid-in capital Retained earnings ($ 10,000) (244,500) ($332,500) ($ 10,000) (272,500) ($410,500) Total liabilities and stockholders' equity
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