For the year ended December 31, 2019, Nelson Co.s income statement showed income of $435,000 before income,
Question:
For the year ended December 31, 2019, Nelson Co.’s income statement showed income of $435,000 before income, tax expense. To compute taxable income, the following differences were noted:
Required:
1. Calculate taxable income and tax payable for tax purposes.
2. Prepare Nelson’s income tax journal entry at the end of 2019.
Transcribed Image Text:
Income from taxexempt municipal bonds Depreciation deducted for tax purposes in excess of depreciation recorded on the books Proceeds received from life insurance on death of an insured employee Corporate tax rate for 2019 Enacted tax rate for future periods $ 60,000 120,000 100,000 30% 35%
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1 Pretaxfinancialincome 435000 Additional depreciationexpense 12...View the full answer
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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