(Solved by Expert Tutors) Part A

SuperSports Inc.reported

Part A

SuperSports Inc.reported pretax financial income of $260,000 for

the year 2016. Taxable income of SuperSports is however different from its pretax financial income because of the items given below.

• Depreciation deducted on the tax return is $40,000 greater than the depreciation charged on Income Statement.
• Estimated Warranties Expenses charged to Income Statement is $30,000 but Warranties expenses deductible on tax return are $20,000
• $3,200 appear in the income statement of SuperSports as Fines and penalties paid.
• SuperSports received $ 6,000 interest from Tax Saving Municipal Bonds.

Enacted Tax Rate for the year 2016 is 30% and for 2017 is 35%

Required:

1. Identify items of permanent and temporary difference from the information given
2. What items of temporary difference result in future taxable amounts and what items will result in future deductible amounts
3. Compute Taxable Income
4. Compute current income tax expense/Tax payable
5. Compute deferred taxes ( Deferred Tax Liability and Deferred Tax Asset)
6. Record journal entry for Income Tax Expense
7. Show how deferred taxes will be reported in the Balance Sheet.

Part B

SuperSports provides you the following pension data for the year 2016.

Service Cost, 2016$248,000

Projected Benefit Obligation, January 2016$340,000

Plan assets (fair value), Januray 1, 2016$360,000

Prior Service Cost - AOCI (2016 amortization, $25,000)$250,000

Net Loss - AOCI (2016 amortization, $10,000)$110,000

Actual Return on Plan Assets$45,000

Interest rate and expected return on plan assets10%

Contributions made to plan assets during 2016$175,000

Required:

 

---

Solution details:

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Apr 19, 2020

EXPERT

Tutor

ANSWER RATING

YES, THIS IS LEGAL

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

• As a reference for in-depth understanding of the subject.
• As a source of ideas / reasoning for your own research (if properly referenced)
• For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).

This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.