Reference no: EM131960264
Problem - At the beginning of 2011, its first year of operation, buffola, Inc. purchased a machine for $100,000. The depreciation method used for financial reporting purposes was straight line and for tax purposes w as sum of the year digits. The machine has useful life of 4 year and no salvage value
Additional information
Assume enacted income tax rate of 20% for 2011 and 25% for all other year
Pretax financial income was $16,000 in 2011 and $3000 for 2012
Included in this income each year was municipal bond interest of $600
In 2012, the company paid fines of $100
In 2011 they also received $4000 from a customer in advance and properly recorded this as unearned revenue for GAAP purpose (the company will earn it in 2012). For tax purpose, this revenue is recorded as earned when the cash is received.
Required:
1) Prepare the journal entries to record income taxes at the end of 2011?
2) Prepare the journal entries to record income taxes at the end of 2012?
|
Evaluate students levels of readiness
: Read about the importance of getting to know your students in order to create relevant and engaging lesson plans that cater to multiple intelligences.
|
|
Describe how you will encourage positive behavior using
: Describe how you will encourage positive behavior using proactive differentiated strategies based on current (within the last five years) research.
|
|
How can a managers communication affect employees motivation
: Recall your experiences in your current or past work environment.How can a manager's communication affect employees' motivation?
|
|
How did the hammurabi code set the precedent for you
: Imagine you are a victim of a break-in at your home. How did the Hammurabi Code set the precedent for you to have rights as a victim?
|
|
Prepare the journal entries to record income taxes
: At the beginning of 2011, its first year of operation, buffola, Inc. purchased a machine for $100,000. Prepare the journal entries to record income taxes
|
|
Discuss reasons for supporting or rejecting the proposal
: Carefully discuss your reasons for supporting or rejecting this proposal to engage in subliminal persuasion. You should offer at least one citation to support.
|
|
Explain two specific aspects about the great wall of china
: Explain two specific aspects about the Great Wall of China, such as facts about its size, length, purposes, varied materials, labor force and its phases.
|
|
What interventions would you suggest to maria
: What interventions would you suggest to Maria and the rest of the treatment team that will help to support the changes that she needs to make?
|
|
How much FICA tax should be withheld on the bonus
: On December 24, 2017, she receives a $10,000 bonus. How much FICA tax should be withheld on the bonus
|