Palm Coast Co. had a deferred tax liability balance due to a…
Palm Coast Co. had a deferred tax liability balance due to a temporary difference at the beginning of 2027 related to $1,500,000 of excess depreciation. In December of 2027, a new income tax act was signed into law that lowered the corporate rate from 30% to 25%, effective January 1, 2029. If taxable amounts related to the temporary difference are scheduled to be reversed by $750,000 for 2028 and 2029, Palm Coast should increase or decrease deferred tax liability by what amount?
Read DetailsThe balance in retained earnings on December 31, 2027, was $…
The balance in retained earnings on December 31, 2027, was $1,440,000; on December 31, 2028, it was $1,164,000. Net income for 2028 was $1,000,000. A stock dividend was declared and distributed, increasing the common stock balance by $500,000 and the paid-in capital balance by $220,000. A cash dividend was also declared and paid. The amount of the cash dividend was
Read DetailsOn December 31, 2029, Chang Corporation leased a ship from F…
On December 31, 2029, Chang Corporation leased a ship from Fort Myers Company for an eight-year period expiring December 31, 2038. Equal annual payments of $500,000 are due on December 31 of each year, beginning with December 31, 2029. The lease is properly classified as a finance lease on Chang’s books. The present value at December 31, 2029 of the eight lease payments over the lease term discounted at 10% (the appropriate rate for Chang to use in this situation) is $2,934,210. Assuming all payments are made on time, the amount that should be reported by Chang Corporation as the total liability for finance leases on its December 31, 2030 balance sheet is
Read DetailsEstevez Company’s salaried employees are paid biweekly. Occa…
Estevez Company’s salaried employees are paid biweekly. Occasionally, advances made to employees are paid back by payroll deductions. Information relating to salaries for the calendar year 2029 is as follows: 12/31/2028 12/31/2029 Employee advances $24,000 $36,000 Accrued salaries payable 160,000 ? Salaries expense during the year 1,400,000 Salaries paid during the year (gross) 1,250,000 At December 31, 2029, what should Estevez report for accrued salaries payable?
Read DetailsIn 2028, equipment was sold for proceeds of $468,000. The eq…
In 2028, equipment was sold for proceeds of $468,000. The equipment cost $786,000 and had a book value of $432,000 at the time of the sale. If the Accumulated Depreciation-Equipment balance was $2,061,000 on 12/31/2027 and $2,205,000 on 12/31/2028, what was the depreciation expense for 2028?
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