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What is southern atlantic net income

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Reference no: EM132019334

Question - Southern Atlantic Distributors began operations in January 2018 and purchased a delivery truck for $120,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2018, 30% in 2019, and 20% in 2020. Pretax accounting income for 2018 was $540,000, which includes interest revenue of $70,000 from municipal bonds. The enacted tax rate is 40%.

Assuming no differences between accounting income and taxable income other than those described above:

Required:

1. Complete the following table given below and prepare the journal entry to record income taxes in 2018.

2. What is Southern Atlantic's 2018 net income?

Reference no: EM132019334

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