Bosch Co.'s records show the below data for 2015: Gross profit from installment sales recorded in books
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Question:
Bosch Co.'s records show the below data for 2015:
- Gross profit from installment sales recorded in books was $420,000. Gross profit from installment debt collections was $280,000 for tax purposes.
- The machine was purchased in January for $300,000. For financial reporting, straight-line depreciation (no salvage value) over a ten-year life is used. For tax purposes, MACRS depreciation is 42,000 for 2015. Interest received on tax-free Iowa State bonds was $9,000. The pre-tax financial income is $600,000. The tax rate is 30%.
1) Find out the taxable income for 2015.
2) Prepare the journal entry to record income taxes for 2015.
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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