Search
Info
Warning
Danger
/ Homework Answers / Accounting / 2. The following information available for XYZ Inc. for 2014.1).

Question

 

2. The following information is available for XYZ Inc. for 2014.1). Excess of tax depreciation over book depreciation, $80,000.This $80,000 difference will reverse equally over the next 4 years.2). Deferral, for book purposes, of $25,000 of subscription incomereceived in advance. The subscription income will be earned in2015. 3). Pretax financial income, $160,000. 4. Tax rate for allyears, 35%. Instructions (a) Compute taxable income for 2014. (b)Prepare the journal entry to record income tax expense, deferredincome taxes, and income taxes payable for 2014. (c) Prepare thejournal entry to record income tax expense, deferred income taxes,and income taxes payable for 2015, assuming taxable income of$255,000

 

Solution
5 (1 Ratings )

Solved
Accounting 3 Months Ago 18 Views
This Question has Been Answered!
Premium Content -

Unlimited Access

Explore More than 2 Million+
  • Textbook Solutions
  • Flashcards
  • Homework Answers
  • Documents
Signup for Better Grades!

Ask an Expert

Our Experts can answer your tough homework and study questions
124306 Accounting Questions Answered!
Post a Question