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(Solved): The following information is available for Burr Corporation for 2023 \& 2024: 1. Depreciation repor ...





The following information is available for Burr Corporation for 2023 \& 2024:
1. Depreciation reported on the tax return exce
The following information is available for Burr Corporation for 2023 \& 2024: 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by . The differences will reverse as follows: 2. Annual interest received on municipal bonds was in 2023 and in 2024. 3. Rent collected in advance on October 1,2023 , totaled for a 3 -year period. Rent was recognized monthly, starting on October 1,2023 for book purposes. 4. During 2023 and 2024 , Burr paid (each year) for a life insurance policy on its executives, with Burr as the beneficiary. In 2024, Burr received due to the untimely passing of its CFO. 5. The tax rates are for 2023 and 2024 , and for 2025 and beyond. 6. A contingent loss due to litigation was accrued in 2023 for . The company expects to pay the loss in 2025. 7. Pretax financial income for the year ended December 31,2023 was , and for the year ended December . 8. The company has a credit balance in the Valuation Allowance and a beginning balance of in the DTA account due to a temporary difference of caused by a deferred revenues for GAAP purposes. The difference was realized for tax purposes in 2023. 9. Of the ending balance of the DTA account, the company believes that it is "more likely than not" that will not be realized. Instructions Assuming no other differences between book and taxable incomes existed, except for those mentioned above, prepare the year end income tax journal entries to recold Income Tax Expense, Deferred Tax Asset/Liability, Income Taxes Payable and Valuation Allowance for 2023 (separate the valuation allowance journal entry from the income tax expense journal entry).


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