Determine tax expense, Taxation

Assignment Help:

Given the below information, provide the journal entry to recognize tax expense. Assume taxes are paid immediately (with cash). Note: the statutory rate is assumed to be 40%.

Assume the interest income is permanently non-taxable. You will have to decide whether there is any deferred tax position, given these facts.

 

Income

Statement

 

Tax Return

Difference: Permanent

Revenues

400

400

 

Cost of Goods Sold

- 150

- 150

 

SG&A Expense

- 50

- 50

 

Depreciation Expense

- 20

- 20

 

Interest Income

20

0

20

Pre-Tax Income

200

 

 

Taxable Income

 

180

 

Statutory Rate

 

40%

40%

Tax Expense

?

 

 

Taxes Paid (Cash)

 

?

 

Deferred Tax?

 

 

?

 

Tax Expense:

Assets

Liabilities

Owners' Equity

Debit          Credit                       $                $

 

 

 

 


Related Discussions:- Determine tax expense

Tax law, Chris married Gina on February 1, 2012, and they became the proud ...

Chris married Gina on February 1, 2012, and they became the proud parents of twins just in time for Christmas. Their Adjusted Gross Income (AGI) for 2012 was $75,000, and their ite

Change in estimate using the reallocation method, Consider the following sc...

Consider the following scenarios: a) Audit fees received by an auditing firm. b) Final ordinary dividend received. Dividends are declared on 31 December and are payable to sh

Asset, two years ago, corporation used its excess cash to purchase piece of...

two years ago, corporation used its excess cash to purchase piece of land as an investment. Is this ordinary, capital or 1231 asset?

Corporate tax, L has business assets worth $6,000,000, NOL carryovers of $1...

L has business assets worth $6,000,000, NOL carryovers of $1,000,000 expiring in 14 years, and NOL carryovers of $1,400,000 expiring in 15 years. 100% of L’s stock is worth $8,000

Case analysis, case analysis on The Myth of Public Goods by Mark Davis (201...

case analysis on The Myth of Public Goods by Mark Davis (2010); the Journal of Libert

Calculate taxable income, Caroline is a 55-year-old Australian resident. Sh...

Caroline is a 55-year-old Australian resident. She  is the chief marketing officer based in Sydney for XYZ Limited (XYZ), a public company listed on the Australian Securities Excha

Effects of a tax on producers of corn syrup, In response to rising obesity,...

In response to rising obesity, a number of pundits have proposed taxing corn syrup, an ingredient in most soda pop. Let's consider the market for corn syrup assuming this tax take

K- vat 2003, i want some problems with solutions on karnataka value added t...

i want some problems with solutions on karnataka value added tax 2003

Advanced tax, The Madison Restaurant was formed a S corporation at the end ...

The Madison Restaurant was formed a S corporation at the end of last year. Bob Buron, owns 60% of the stock, manages the restaurant. Ray Huges owns the remaining 40%

Ad valorem tax, It is a tax based on the assessed value of personal propert...

It is a tax based on the assessed value of personal property or real estate. Ad valorem taxes can be property taxes or even duty that is levied on imported items. Property ad valor

Write Your Message!

Captcha
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