The estimated litigation expense of 1500000 will be

Assignment Help Accounting Basics

Reference no: EM13592500

Mathis Co. at the end of 2012, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:
Pretax financial income $600,000
Estimated litigation expense 1,500,000
Installment sales (1,200,000)
___________
Taxable income $900,000
The estimated litigation expense of $1,500,000 will be deductible in 2014 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $600,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $600,000 current and $600,000 noncurrent. The income tax rate is 30% for all years. What is the income tax expense?

Reference no: EM13592500

Questions Cloud

Big burgers has hired you as a consulant and given you an : conceptual understanding defining in identifying relevant informationbusiness application - dave burgers is in the fast

You are a member of a college organization that is about to : you are a member of a college organization that is about to put on a fundraiser involving selling beer at the state

There is a narrow alley a ladder leans against each wall : there is a narrow alley. a ladder leans against each wall starting at the opposite corner. one ladder is 20 feet long

Determine the sales required for the new store to earn a : melissa valdez is planning to expand her clothing business by opening another store. in planning for the new store

The estimated litigation expense of 1500000 will be : mathis co. at the end of 2012 its first year of operations prepared a reconciliation between pretax financial income

Find the magnitude of the force required to keep a 280 lb : a. find the magnitude of the force required to keep a 280 lb barrel from sliding down a ramp inclined at 12.5 degrees

Each making an angle of 55degrees with the ground the total : a telephone tower was built on a flat surface and it was anchored by four wires each making an angle of 55degrees with

A plane takes off at an angle of 6 degrees traveling at : a plane takes off at an angle of 6 degrees traveling at the rate of 205 feet per second. if it continues on this

The budget committee of hardesty company collects the : the budget committee of hardesty company collects the following data for its san miguel store in preparing budgeted

User Account

All Pages