Question

The accounting (not the income tax) records of Kaska Publications, Inc., provide the income statement for 2014.
2014
Total revenue..........................................$760,000
Expenses:
Cost of goods sold................................ $355,000
Operating expenses................................ 180,000
Total expenses before tax....................... 535,000
Pretax accounting income......................$225,000
Taxable income for 2014 includes these modifications from pre- tax accounting income:
a. Additional taxable income of $ 16,000 earned in 2015 but taxed in 2014
b. Additional depreciation expense of $ 38,000 for MACRS tax depreciation in 2014 The income tax rate is 33%.

Requirements
1. Compute Kaska’s taxable income for 2014.
2. Journalize the corporation’s income taxes for 2014.
3. Prepare the corporation’s single- step income statement for 2014.



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  • CreatedJuly 25, 2014
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