Accounting

Problem 1: California Surplus Inc. qualifies to use the installment- deals revisal for value purposes and sold an investment on an installment basis. The constitutive(a) gain of $75000 was reported for financial reporting purposes in the menses of time of sale. The installment period is 3 years; third of the sale price is collected in 2012 and the rest in 2013. The appraise 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 $ 175,000 $ 175,000 makeshift deviance $ 75,000 $ 25,000 Income $ 250,000 $ 200,000 2013 (35% tax rate) Income before temporary going away(p) $ 200,000 $ 200,000 Temporary divagation $ - $ 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 201 4. No deferred income taxes existed at the b! eginning of 2012. 2) inform how the deferred taxes entrust appear on the balance sheet at the conclusion of distributively 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 spark advance accountant shows the following info: On Jan 1, 2012,...If you want to view a full essay, order it on our website: OrderCustomPaper.com

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