Busan Company has the following information related to its operations during 2022: The firm signed an...

 

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Busan Company has the following information related to its operations during 2022: The firm signed an installment sales contract for $450,000 in 2022. The customer is required to pay in three equal installments starting in 2023. IDepreciation for tax purposes exceeded depreciation expense on the financial statements by $200,000 in 2022. The depreciation will unwind over five years starting in 2023. Interest revenue on state and municipal bonds during 2022 was $35,000. Pretax financial income for 2022 is $600,000 and the tax rate is 21%. • ● . Required: Calculate taxable income for 2022. 1. 2. Prepare the journal entry to record income taxes for 2022. Your journal entry must be in good form: debit accounts first followed by indented credit accounts, numbers right-aligned within the debit and credit columns. 3. Assuming financial income in 2023 is $500,000, prepare the journal entry in good form to record income taxes for 2023. In addition to unwinding the temporary differences from 2022, the firm no longer owned state and municipal bonds during 2023, but they instead they incurred a zoning fine of $10,000. Busan Company has the following information related to its operations during 2022: The firm signed an installment sales contract for $450,000 in 2022. The customer is required to pay in three equal installments starting in 2023. IDepreciation for tax purposes exceeded depreciation expense on the financial statements by $200,000 in 2022. The depreciation will unwind over five years starting in 2023. Interest revenue on state and municipal bonds during 2022 was $35,000. Pretax financial income for 2022 is $600,000 and the tax rate is 21%. • ● . Required: Calculate taxable income for 2022. 1. 2. Prepare the journal entry to record income taxes for 2022. Your journal entry must be in good form: debit accounts first followed by indented credit accounts, numbers right-aligned within the debit and credit columns. 3. Assuming financial income in 2023 is $500,000, prepare the journal entry in good form to record income taxes for 2023. In addition to unwinding the temporary differences from 2022, the firm no longer owned state and municipal bonds during 2023, but they instead they incurred a zoning fine of $10,000.

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