Make the journal entry to record income taxes

Assignment Help Accounting Basics
Reference no: EM132822125

Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $580,000 and with an expected useful life of four years and no residual value. For tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax accounting income the first year the equipment was used was $680,000, which includes interest revenue of $14,000 from municipal bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 25%.

Problem 1: Make the journal entry to record income taxes.

Reference no: EM132822125

Questions Cloud

Supply chain innovations by wal-mart : Wal-Mart is well know to be a leader in Supply Chain Management. This week's writing assignment is related to Wal-Mart.
What is the focal point of lmx theory : 1. What is the focal point of LMX theory? How does LMX theory challenge a basic assumption common to prior theories?
Identify and explain the core modules of hadoop : Identify and explain the core modules of Hadoop. Install MongoDB database on your local PC. Create a table with five columns and add ten rows.
Carry out project functions : The project manager must have some powers and roles in order to carry out project functions. With examples identify and describe those powers and roles.
Make the journal entry to record income taxes : Make the journal entry to record income taxes. Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $580,000
How much is the dividend per share : A developer declared a dividend of 10 000 000 for its common stock. Suppose there 600 000 shares of common stock, how much is the dividend per share
Prepare annotated bibliography : If we consider disabilities as an aspect of diversity, discuss what employers can gain by actively recruiting and hiring people with disabilities.
Explain the intrusion detection systems : Build a formalized list(s) excel spreadsheet XLS that will identify, categorize, weigh, and explain common methodologies Intrusion Detection Systems.
What is libby recognized gain on the transaction : The fair market value is $125,000. What is Libby's recognized gain on the transaction and her adjusted basis in the building she receives?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd