Scribd Logo
Upload

Welcome to Scribd!

  • 190 views

    Ch17 Problem 77 SM 2014e Final 012913

    Uploaded by

    testbank
    MM's current income tax expense for 2013 was $4,799,100. Its deferred income tax expense was $207,400, resulting in a total income tax provision of $5,006,500. This total provision reconciles to MM's hypothetical income tax expense of 34% on its pre-tax income through adjustments for tax-exempt interest income, nondeductible expenses, and other items.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Ch17 Problem 77 SM 2014e Final 012913

    Uploaded by

    testbank
    190 views2 pages
    MM's current income tax expense for 2013 was $4,799,100. Its deferred income tax expense was $207,400, resulting in a total income tax provision of $5,006,500. This total provision reconciles to MM's hypothetical income tax expense of 34% on its pre-tax income through adjustments for tax-exempt interest income, nondeductible expenses, and other items.

    Original Title

    Ch17_Problem_77_SM_2014e_Final_012913

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    MM's current income tax expense for 2013 was $4,799,100. Its deferred income tax expense was $207,400, resulting in a total income tax provision of $5,006,500. This total provision reconciles to MM's hypothetical income tax expense of 34% on its pre-tax income through adjustments for tax-exempt interest income, nondeductible expenses, and other items.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    190 views2 pages

    Ch17 Problem 77 SM 2014e Final 012913

    Uploaded by

    testbank
    MM's current income tax expense for 2013 was $4,799,100. Its deferred income tax expense was $207,400, resulting in a total income tax provision of $5,006,500. This total provision reconciles to MM's hypothetical income tax expense of 34% on its pre-tax income through adjustments for tax-exempt interest income, nondeductible expenses, and other items.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 2

    Problem 77

    1. Compute MM's current income tax expense or benefit for 2013


    Income before income taxes
    Interest from municipal bonds
    Nondeductible M&E
    DPAD
    Nondeductible fines
    Book equivalent of taxable income

    Net change in cumulative TTD


    Net change in cumulative DTD
    Net change cumulative TD
    Taxable income
    x 34%
    Current tax expense

    15,000,000
    (50,000)
    20,000
    (250,000)
    5,000
    14,725,000
    (1,000,000)
    390,000
    (610,000)

    $
    $

    14,115,000
    0.34
    4,799,100

    2. Compute MM's deferred income tax expense or benefit for 2013


    Ending balance in TTD
    Beginning balance in TTD
    Increase in deferred tax liability

    Ending balance in DTD


    Beginning balance in TTD
    Increase in deferred tax asset

    Deferred tax expense


    Deferred tax benefit
    Net deferred tax expense

    Tax provision
    Current income tax expense
    Deferred income tax expense
    Total income tax provision

    $
    $

    (3,060,000)
    (2,720,000)
    (340,000)
    1,353,200
    1,220,600
    132,600
    340,000
    (132,600)
    207,400

    4,799,100
    207,400
    5,006,500

    Check
    Book equivalent of taxable income
    x 34%
    Total income tax provision

    $
    $

    14,725,000
    0.34
    5,006,500

    3. Prepare a reconciliation of MM's total income tax provision with its hypothetical income tax expense
    Reconciliation of Effective Tax Rate
    Provision at 34% [$15,000,000 x 34%]
    Tax exempt interest ($50,000 x 34%)
    Nondeductible M&E ($20,000 x 34%)
    DPAD ($250,000 x 34%)
    Nondeductible fines ($5,000 x 34%)
    Provision

    Dollars
    $

    5,100,000
    (17,000)
    6,800
    (85,000)
    1,700
    5,006,500

    Percent
    34.00%
    -0.11%
    0.05%
    -0.57%
    0.01%
    33.38%

    [$5,100,000 / $15,000,000]
    [$17,000 / $15,000,000]
    [$6,800 / $15,000,000]
    [$85,000 / $15,000,000]
    [$1,700 / $15,000,000]

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy