Hinton Exploration Company reported pretax financial income of $637,000 for the calendar year 2013. Included in the

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Hinton Exploration Company reported pretax financial income of $637,000 for the calendar year 2013. Included in the Other Income section of the income statement was $98,000 of interest revenue from municipal bonds held by the company. The income statement also included depreciation expense of $580,000 for a machine that cost $3,250,000. The income tax return reported $650,000 as MACRS depreciation on the machine.
The enacted tax rate is 40% for 2013 and future years. Prepare the journal entry or entries necessary to record income taxes for 2013.
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Intermediate Accounting

ISBN: 978-0538479738

18th edition

Authors: Earl K. Stice, James D. Stice

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