People. I need some help with this assignment that needs to be done in Excel Problem 1: Oregon Surplus Inc. qualifies to use the installment-sales method for tax purposes and sold an investment on an installment basis. The total gain of $75000 was reported for financial reporting purposes in the period of sale. The installment period is 3 years; one-third of the sale price is collected in 2014 and the rest in 2015 and 2016. The tax rate was 35% in 2014, 30% in 2015, and 30% in 2016. The enacted tax rates of 2015 and 2016 are not known until 2015. The accounting and tax data are shown below. Financial Accounting Tax Return 2014 (35% tax rate) Income before temporary difference $ 175,000 $ 175,000 Temporary difference $ 75,000 $ 25,000 Income $ 250,000 $ 200,000 2015 (30% tax rate) Income before temporary difference $ 200,000 $ 200,000 Temporary difference $ - $ 25,000 Income $ 200,000 $ 225,000 2016 (30% tax rate) Income before temporary difference $ 180,000 $ 180,000 Temporary difference $ - $ 25,000 Income $ 180,000 $ 205,000 Required: 1) Prepare the journal entries to record the income tax expense, deferred income taxes, and the income taxes payable for 2014, 2015, and 2016. No deferred income taxes existed at the beginning of 2012. 2) Explain how the deferred taxes will appear on the balance sheet at the end of each year. (Assume Installment Accounts Receivable is classified as a current asset.) 3) Show the income tax expense section of the income statement for each year, beginning with “Income before income taxes.” Problem 2: Philadelphia Co. incurred a net operating loss of $850,000 in 2014. Combined income of 2012 and 2013 was $650,000. The tax rate for all years is 30%. Trenton elects the carry back option. Required: a. Prepare the journal entries to record the benefit of loss carry back and loss carry forward option. b. Assuming that it is more likely than not that the entire net operating loss carry forward will not be realized in future years, prepare all the journal entries necessary at the end of 2014. .

1. People. I need some help with this assignment that needs to be
done in Excel
Problem 1:
Oregon Surplus Inc. qualifies to use the installment-sales
method for tax purposes and sold an investment on an
installment basis. The total gain of $75000 was reported for
financial reporting purposes in the period of sale. The
installment period is 3 years; one-third of the sale price is
collected in 2014 and the rest in 2015 and 2016. The tax rate
was 35% in 2014, 30% in 2015, and 30% in 2016. The enacted
tax rates of 2015 and 2016 are not known until 2015.
The accounting and tax data are shown below.
Financial Accounting
Tax Return
2014 (35% tax rate)
Income before temporary difference

2. $
175,000
$
175,000
Temporary difference
$
75,000
$
25,000
Income
$
250,000
$
200,000

3. 2015 (30% tax rate)
Income before temporary difference
$
200,000
$
200,000
Temporary difference
$
-
$
25,000
Income
$
200,000

4. $
225,000
2016 (30% tax rate)
Income before temporary difference
$
180,000
$
180,000
Temporary difference
$
-
$
25,000

5. Income
$
180,000
$
205,000
Required:
1)
Prepare the journal entries to record the income tax expense,
deferred income taxes, and the income taxes payable for 2014,
2015, and 2016. No deferred income taxes existed at the
beginning of 2012.
2)
Explain how the deferred taxes will appear on the balance sheet

6. at the end of each year. (Assume Installment Accounts
Receivable is classified as a current asset.)
3)
Show the income tax expense section of the income statement
for each year, beginning with “Income before income taxes.”
Problem 2:
Philadelphia Co. incurred a net operating loss of $850,000 in
2014. Combined income of 2012 and 2013 was $650,000. The
tax rate for all years is 30%. Trenton elects the carry back
option.
Required:
a.
Prepare the journal entries to record the benefit of loss carry
back and loss carry forward option.
b.
Assuming that it is more likely than not that the entire net
operating loss carry forward will not be realized in future years,
prepare all the journal entries necessary at the end of 2014.