1) | ||
Taxable Income be X | ||
X(.40) = $320,000 taxes due for 2017 | ||
Taxable Income = $320,000/40% | $ 800,000.00 | |
2) | ||
Taxable income [calculated above] | $ 800,000.00 | |
Excess depreciation |
$ 120,000.00 | |
Municipal interest | $ 10,000.00 | |
Unearned rent | $ (40,000.00) | |
Pretax financial income for 2017 | $ 890,000.00 | |
3) | ||
General Journal | Debit | Credit |
Year 2017 | ||
Income Tax Expense | $ 348,000.00 | |
Deferred Tax Asset ($40,000 X .35) | $ 14,000.00 | |
Income Tax Payable ($800,000 X .40) | $ 320,000.00 | |
Deferred Tax Liability ($120,000 X .35) | $ 42,000.00 | |
Year 2018 | ||
Income Tax Expense | $ 339,500.00 | |
Deferred Tax Liability ($120,000 ÷ 4) X .35 | $ 10,500.00 | |
Income Tax Payable ($980,000 X .35) | $ 343,000.00 | |
Deferred Tax Asset (($40,000 ÷ 2) X .35) | $ 7,000.00 | |
4) | ||
Income before income taxes | $ 890,000.00 | |
Income tax expense | ||
Current | $ 320,000.00 | |
Deferred ($42,000 – $14,000) | $ 28,000.00 | $ 348,000.00 |
Net income | $ 542,000.00 | |
please help me ASAP . show all calculation PROBLEMS P19-1 (L01,2,4) EXCEL (Three Differences, No Beginning...
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