Prepare income tax expense section of income

Reference no: EM13160019

1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000. This difference will reverse in equal amounts of $30,000 over the years 2011-2014.
2. Interest received on municipal bonds was $10,000.
3. Rent collected in advance on January 1, 2010 totaled $60,000 for a 3 year period. Of this amount, $40,000 was reported as unearned at December 31, for book purposes.
4. Tax rates are 40% for 2010 and 35% for 2011 and subsequent years.
5. Income taxes of $320,000 are due per the tax return for 2010.
6. No deferred taxes existed at the beginning of 2010.

Instructions
(a) Compute taxable income for 2010
(b) Compute pretax financial income for 2010
(c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2010 and 2011,
(D) Prepare the income tax expense section of the income statements for 2010, beginning with "income before income expense."

Reference no: EM13160019

Questions Cloud

Derive the mathematical expressions : Derive the mathematical expressions and determine the level of output where the average cost function reaches a minimum (the firmís capacity).

Simple class definition and then provide the syntax : Provide a simple class definition and then provide the syntax and the rationale for declaring an array of objects of the class. Also explain the dimension of the array and why you chose that number of elements for the object array.

Discuss some options for mobile wireless : Please discuss some options for mobile wireless internet connection, and describe the types of hardware that would be involved in making such a connection

Professional training in science or technology : Very few elected officials in America have professional training in science or technology. In a paragraph or two explain what you think? Does this inhibit the effective governance of science and technology?

Prepare income tax expense section of income : Prepare the income tax expense section of the income statements for 2010, beginning with "income before income expense."

Does it matter if these price increases : If excess profits are taxed away, where will oil companies get the money to fund new exploration and development of oil properties? Does it matter if these price increases are demand or supply induced?

Explain how the peer review can be performed : Williams & Co., a member of the Private Companies Practice Section, is to have a "peer review." The peer review can be performed by: a CPA firm selected by Williams & Co.

What price should you charge for movie tickets : All the costs of exhibiting movies are fixed except for the $3.50 royalty payment you must make to the film distributor for each ticket sold. What price should you charge for movie tickets?

Prepare the journal entries to record depreciation : 1. Prepare the journal entries to correct the errors (ignore income taxes). 2. Prepare the journal entries to record 2009 depreciation for any assets record in requirement.

User Account

All Pages