ANSWER
Solution a:
Computation of Taxable Income for 2017 - Zurich Company | |
Particulars | Amount |
Pre Tax Financial Income | $70,000.00 |
Less: Depreciation difference for book and tax purpose | $16,000.00 |
Add: Unearned Rent | $22,000.00 |
Add: Fines for pollution | $11,000.00 |
Taxable income for 2017 | $87,000.00 |
Solution b:
Adjusting Journal Entries - Zurich Company | ||
Particulars | Debit | Credit |
Income tax Expense Dr | $24,300.00 | |
Deferred Tax Assets Dr ($22,000*30%) | $6,600.00 | |
To Income Tax Payable ($87,000*30%) | $26,100.00 | |
To Deferred Tax Liability ($16,000*30%) | $4,800.00 |
Solution c:
Income Statement Partial (Zurich Company) | ||
Particulars | Amount | |
Income before Income Taxes | $70,000.00 | |
Less: Income Tax Expense: | ||
Current Income Tax | $26,100.00 | |
Deferred tax liability | $4,800.00 | |
Deferred tax Assets | -$6,600.00 | $24,300.00 |
Income after taxes | $45,700.00 |
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E19-4 (LO1,2) (Three Differences, Compute Taxable Income, Entry for Taxes) Zurich Company reports pretax financial...
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