The accounting (not the income tax) records of Mahoney Publications, Inc., provide the income statement for 2012.
Question:
Taxable income for 2012 includes these modifications from pretax accounting income:
a. Additional taxable income of $16,000 earned in 2013 but taxed in 2012
b. Additional depreciation expense of $45,000 for MACRS tax depreciation in 2012
The income tax rate is 40%.
Requirements
1. Compute Mahoneys taxable income for 2012.
2. Journalize the corporations income taxes for 2012.
3. Prepare the corporations income statement for2012.
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Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
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