The accounting (not the income tax) records of Consolidated Publications, Inc., provide the comparative income statement for

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The accounting (not the income tax) records of Consolidated Publications, Inc., provide the comparative income statement for 2010 and 2011, respectively:

The accounting (not the income tax) records of Consolidated Publ

Taxable income for 2010 includes these modifications from pretax accounting income:
a. Additional taxable income of $13,000 for accounting income earned in 2011 but taxed in 2010.
b. Additional depreciation expense of $40,000 for MACRS tax depreciation.
The income tax rate is 35%.

Requirements
1. Compute Consolidated€™s taxable income for 2010.
2. Journalize the corporations€™ income taxes for 2010.
3. Prepare the corporations income statement for2010.

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Financial accounting

ISBN: 978-0136108863

8th Edition

Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas

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