Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. lance lown services reports warranty expense by es

Lance Lown Services reports warranty expense by estimating the amount that eventually will be paid...

90.2K

Verified Solution

Question

Accounting

image
Lance Lown Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. For tax purposes, the expense is deducted when the warranty work is completed. At December 31, 2021, Lance has a warranty liability of $2 million and taxable income of $80 milion. At December 31,2020 , Lance reported a deferred tax asset of $473,000 related to this difference in reporting warranties, its only temporary difference. The enacted tax rate is 25% each year. Required: Prepare the approptiate journal entry to record Lance's income tax provision for 2021 . (II no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

In detail, what are the functional types of bacterial toxins?. give examples of each

Physics
1.2K views

A soap film (n = 1.33) is formed in a loop of wire that is mounted...

General Management
1.2K views

To what extent does your company use technology to conduct its marketing process? Please explain it...

Biology
1.2K views

1 What are factors for people leaving Europe 2 Why do you think the European...

Physics
1.2K views

4 Can t be determined 3 Ten tuning forks are arranged in increasing order of...

Physics
1.2K views

For a series LCR circuit given below resonance frequency Then R 12 2 2 and...

Calculus
1.2K views

Find all critical numbers for the following function Then use the second derivative test on...

Accounting
1.2K views

On April 1, $25,000.00 364-day treasury bills were auctioned off to...

Accounting
1.2K views

which of the following organizations do not contribute to the formation of gaap fasb irs...

Accounting
1.2K views

73,000 The income statement for the year 2020 of Bugati Co. contains the following information:...

Accounting
1.2K views

Belsky Corporation has provided the following data from its activity-based costing system: \table[[,\table[[Estimated],[Activity...

Accounting
1.2K views

Homewo Help Submit Check my work Lucio Products markets to computer games Claimjumper and Makeover....