Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

1. Explain in detail the two alternative methods a company may use to report a net operating loss (reports a Loss Before Income Taxes). Be specific and detailed in your answer.

/in /by
1.  Explain in detail the two alternative methods a company may use to report a net operating loss (reports a Loss Before Income Taxes).
Be specific and detailed in your answer.  
2. The Williams Corporation, which operates on a calendar year, started its operations on January 1, 2015.   
Williams pay corporate income taxes at the rate of 35%
Williams Corporation has no permanent or timing differences (no differences between reported accounting profits and taxable income) in any calendar year.
Below is Williams Corporation GAAP (Accounting) Income Before Taxes for the following calendar year ends:
2015$100,000
2016$500,000
2017($400,000)
2018($300,000)
2019$300,000
a) Prepare the 2017 year end journal entry for income tax expenses (benefit).
b) Assume that Williams is unable to determine if the firm will be profitable in the future when preparing the 2018 journal entry (entries)
Prepare the 2018 year end journal entry (entries) for income tax expenses (benefit) .
c) Prepare the 2019 year end journal entry (entries) for income tax expenses.
3.  Your firm has been conducting tax research by looking at cases settled in federal courts as a means to decide what position to take when reporting this year’s taxes.
Based upon the outcome of existing tax law cases, and after consulting with the firm’s auditors and attorney’s, you feel there is a 75% chance that if your firm takes
this tax position when it files its US tax return, the firm will be successful if the IRS challenges this tax position.  The potential benefit from taking this position in the current
year is material to the Balance Sheet and Income Statement.   The tax benefit is an all or nothing tax benefit.
Each of the tax law cases to date have also upheld 100% of the tax benefit claimed by other firms related to this tax position.
a) With specific reference to the ASC for uncertain tax positions,  summarize the accounting rules that apply.
b) Would the firm be able to recognize the entire tax benefit from this tax position in the current year’s income statement?
4.  Assume the following information for Robert Corporation for the year ended December 31, 2016:
Accounting Income Before Income Taxes########
Permanent Differences-Income Items Included
in the above Accounting Income Before Income Taxes Which Are Not Taxable$100,000
under the Income Tax rules
a) Record the journal entry for income tax expense and income taxes payable under US GAAP, assuming that the
US Corporate Income Tax Rate is 35%
for the year ended December 31, 2016.
5.  Assume the following information for Robert Corporation for the year ended December 31, 2016:
Accounting Income Before Income Taxes########
Permanent Differences-Income Items Included
in the above Accounting Income Before Income Taxes Which Are Not Taxable$100,000
under the Income Tax rules
Timing Differences:  Robert Corporation uses accelerated depreciation
methods for income tax purposes.  For 2016, income tax depreciation
expense using the accelerated method was greater than 
accounting (book) depreciation expense by$100,000
a) Record the journal entry for income tax expense, income taxes payable, and deferred income taxes payable under US GAAP, assuming that the
US Corporate Income Tax Rate is 35%
for the year ended December 31, 2016.
Assume this is the first year that Robert Corporation has been in operation.
 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"