Solution-Calculate taxable income and income tax payable

Calculate taxable income and income tax payable each year

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Reference no: EM132496083

Arbuckle Incorporated started operations on January 1, 2016 and purchased $1,000,000 of equipment. The income tax rate was 40% in both years. The following information related to 2017 and 2018:

	2017	2018
Year
Accounting Income before Income tax	$275,000	5410,000
Golf club dues	5,000	6,000
Accrued warranty costs	25.000	60,000
Warranty costs pa id	20,000	45.000
Da • reclatIon expense on equipment	100,000	100,000
Ca • gal cost allowance	150.000	125,000

Question a) Calculate taxable income and income tax payable for each year.

Question b) Prepare journal entries to record the taxes for each year.

Reference no: EM132496083

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Calculate taxable income and income tax payable each year : Calculate taxable income and income tax payable for each year. Arbuckle Incorporated started operations on January 1, 2016 and purchased

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Calculate taxable income and income tax payable each year

Reference no: EM132496083

Reference no: EM132496083

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