PEI Marine Inc. had income before income tax of $110,000 and taxable income of $90,000 for 2014,

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PEI Marine Inc. had income before income tax of $110,000 and taxable income of $90,000 for 2014, the company's first year of operations. The income tax rate is 25%. The company uses ASPE.
1. Make the entry to record PEI Marine's income taxes for 2014.
2. Show what PEI Marine will report on its 2014 income statement, starting with income before income tax. Also, show what PEI Marine will report for current and long-term liabilities on its December 31, 2014, balance sheet.
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Related Book For  book-img-for-question

Financial Accounting

ISBN: 978-0133472264

5th Canadian edition

Authors: Charles Horngren, William Thomas, Walter Harrison, Greg Berberich, Catherine Seguin

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