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

Taxation, Alec Smart is 59 years of age and is planning for his retirement....

Alec Smart is 59 years of age and is planning for his retirement. Following a visit to his financial adviser in March of the current tax year, Alec wants to contribute funds to his

Gregory R. and Lulu B. Clifden tax return, Gregory R. and Lulu B. Clifden l...

Gregory R. and Lulu B. Clifden live with their family at the Rock Glen House Bed &Breakfast, which Gregory operates. The Bed & Breakfast (B&B) is located at 33333 Fume Blanc Way, T

Computation, "Alfred E. Old and Beulah A. Crane, each age 42, married on Se...

"Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2010. Alfred and Beulah will file a joint return for 2011. Alfred''''s Social Security number is 111-11-111

Interest and taxes, Revenue: Revenue is how much a company receives in inco...

Revenue: Revenue is how much a company receives in income when making sales. Revenue increased from 2011 to 2012 by 14.5%. This is great considering poor economic conditions. Gr

Corporate Taxation, do you offer tutoring services for graduate accounting ...

do you offer tutoring services for graduate accounting students?

Assignment, hi i need solution of following assignment right now Jordan and...

hi i need solution of following assignment right now Jordan and Cameron are a married couple. Jordan works in IT and earns $180 000 p.a. The company he works for also pays for his

Corporate tax – itx 628, Problems for Benchmark HW: There are issues here t...

Problems for Benchmark HW: There are issues here that were not covered in live lecture, but here are some issues that you need to be conscious of when attempting the problems. t

Compute section 179 deduction and taxable income, Loni Company paid $ 527,0...

Loni Company paid $ 527,000 for tangible personalty in 2011 and elected to expense $ 500,000 of the cost (the limited dollar amount for 2011). Loni's taxable income before a Sectio

Principles , principles of business taxation

principles of business taxation

Tax return, I have an assignment that requires me to prepare a tax return ....

I have an assignment that requires me to prepare a tax return .

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