Phillips, Inc., a cash basis C corporation, completes $100,000 in sales for year 1, but only $75,000 of this amount is collected during year 1. The remaining $25,000 from these sales is collected promptly during the first quarter of year 2. The applicable income tax rate for year 1 and thereafter is 30%. Compute Phillips’s year 1 current and deferred income tax expense.
Answer to relevant QuestionsContinue with the results of Problem 33. Prepare the GAAP journal entries for Phillips’s year 1 income tax expense. In problem Phillips, Inc., a cash basis C corporation, completes $100,000 in sales for year 1, but only ...Willingham, Inc., an accrual basis C corporation, reports pretax book income of $1.6 million. At the beginning of the tax year, Willingham reported no deferred tax accounts on its balance sheet. It is subject to a 35% U.S. ...In addition to the temporary differences identified in Problems 41–44, Relix reported two permanent differences between book and taxable income. It earned $2,375 in tax-exempt municipal bond interest, and it incurred $780 ...In addition to the temporary differences identified in Problems 49–52, Kantner reported two permanent book-tax differences. It earned $7,800 in tax-exempt municipal bond interest, and it reported $850 in nondeductible ...Selma operates a contractor's supply store. She maintains her books using the cash method. At the end of the year, her accountant computes her accrual basis income that is used on her tax return. For 2014, Selma had cash ...
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