Deferred taxes calculated tax expense, taxes payable and deferred tax

Deferred taxes calculated tax expense

Week 1 — Individual Assignment: Deferred Taxes — Due Mon, Day 7

All the information you need to compete this assignment is included.


** Anything else will not be accepted for this assignment **

  • Do not significantly alter the formatting of the spreadsheet
  • Do not delete tabs or columns
  • Do not change column headers or descriptions
  • Do not alter column width, formatting, shading or colors
  • I have provided enough lines for entries (If you need to add rows then something is incorrect)
  • Use the tab called “Work” for calculations (optional – not graded)

Submit the worksheet as your completed assignment.


WA Smith & Company had the following results of operations for the years 2013 thru 2017.

Year  2013  2014  2015  2016  2017
Income before tax    720,000    800,000    690,000    730,000    720,000

The company uses the asset-liability method to account for deferred taxes. The below table summarizes the differences in accounting between GAAP and tax regulations. Assume that these are the only deferred tax items over the 5 year period and that the company has a 40% tax rate each year.

Item  2013  2014  2015  2016  2017  Total
Per books      10,000      10,000      10,000      10,000      10,000     50,000
Per tax return      50,000             –             –             –             –     50,000
Difference     (40,000)      10,000      10,000      10,000      10,000           –
Interest revenue from municipal bonds
Per books      10,000      10,000      10,000      10,000      10,000     50,000
Per tax return             –             –             –             –             –           –
Difference      10,000      10,000      10,000      10,000      10,000     50,000
Royalty revenue
Per books      25,000      25,000      25,000      25,000             –   100,000
Per tax return    100,000             –             –             –             –   100,000
Difference     (75,000)      25,000      25,000      25,000             –           –

SECTION 1 – Calculation of tax expense, taxable payable & deferred tax amounts

1(a) Calculate income tax expense for each year

1(b) Calculate income tax payable for each year

1(c) Calculate current and non-current deferred tax amounts for each year

1(d) Prepare the entries to record income tax expense, income tax payable and deferred taxes for 2013 and 2014

SECTION 2 – Presentation in financial statements

2(a) Complete the summary income statements for each year

2(b) Compete the deferred tax amounts on the balance sheet for each year

SECTION 3 – Valuation allowance

Before closing the books for 2013, the company determines $2,000 of the deferred tax asset related to depreciation will not be realized.

3(a) Record the entry for the deferred tax valuation allowance

3(b) Complete the balance sheet presentation for the deferred tax asset and valuation allowance

This is the form that will be used to grade your assignment:

Criteria Possible Points
Section 1 – Calculation of tax expense, taxable payable & deferred tax amounts 55.0
Section 2 – Presentation in financial statements 15.0
Section 3 – Valuation allowance 10.0
Utilizes provided layout correctly 10.0

Calculate the price of your order

Select your paper details and see how much our professional writing services will cost.

We`ll send you the first draft for approval by at
Price: $36
  • Freebies
  • Format
  • Formatting (MLA, APA, Chicago, custom, etc.)
  • Title page & bibliography
  • 24/7 customer support
  • Amendments to your paper when they are needed
  • Chat with your writer
  • 275 word/double-spaced page
  • 12 point Arial/Times New Roman
  • Double, single, and custom spacing
  • We care about originality

    Our custom human-written papers from top essay writers are always free from plagiarism.

  • We protect your privacy

    Your data and payment info stay secured every time you get our help from an essay writer.

  • You control your money

    Your money is safe with us. If your plans change, you can get it sent back to your card.

How it works

  1. 1
    You give us the details
    Complete a brief order form to tell us what kind of paper you need.
  2. 2
    We find you a top writer
    One of the best experts in your discipline starts working on your essay.
  3. 3
    You get the paper done
    Enjoy writing that meets your demands and high academic standards!

Samples from our advanced writers

Check out some essay pieces from our best essay writers before your place an order. They will help you better understand what our service can do for you.

Get your own paper from top experts

Order now

Perks of our essay writing service

We offer more than just hand-crafted papers customized for you. Here are more of our greatest perks.

  • Swift delivery
    Our writing service can deliver your short and urgent papers in just 4 hours!
  • Professional touch
    We find you a pro writer who knows all the ins and outs of your subject.
  • Easy order placing/tracking
    Create a new order and check on its progress at any time in your dashboard.
  • Help with any kind of paper
    Need a PhD thesis, research project, or a two-page essay? For you, we can do it all.
  • Experts in 80+ subjects
    Our pro writers can help you with anything, from nursing to business studies.
  • Calculations and code
    We also do math, write code, and solve problems in 30+ STEM disciplines.

Frequently asked questions

Get instant answers to the questions that students ask most often.

See full FAQ
    See full FAQ

    Take your studies to the next level with our experienced specialists

    Hello, we are online 24/7. Leave a message we will reply instantly