Question Details

(Solved) (Latest ver. Aug 2020) - Marshall Corp Future Tax Asset - Amounts to be Realized

Brief item decscription


Item details:

Question:

Marshall Corp. had a future tax asset account with a balance of $101,500 at the end of 2007 due to a single temporary difference of $290,000 related to warranty liability accruals. At the end of 2008, this same temporary difference has increased to $315,000. Taxable income for 2008 is $887,000. The tax rate is 35% for all years

a) Calculate and record income taxes for 2008, assuming that it is more likely that not that the future tax asset will be realized

b)
1. Assuming that it is more likely than not that $30,000 of the future tax asset will not be realized, prepare the journal entries to record income taxes for 2008. Marshall does not use a valuation allowance account.

2. In 2009, prospects for the company improved. While there was no change in the temporary deductible differences underlying the future tax asset account, it was now considered more likely than not that the company would be able to make full use of the temporary differences. Prepare the entry, if applicable, to adjust the future tax asset account.

 







About this question:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 16, 2020

PRICE: $11.5

Solution~00010900.zip (18.37 KB)

Buy this answer for only: $11.5

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by PayPal.
SiteLock

Need a similar solution fast, written anew from scratch? Place your own custom order

We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now