$1,500 in meal and entertainment expenses show as a permanent difference for tax. Prepare the necessary adjusting entry.

The company uses straight line depreciation for book and MACRS depreciation for the tax return

MACRS depreciation was $209,301 higher than book. Prepare the adjusting entry for the deferred tax.

There have been recent tax structure changes the could impact the company. Peyton Approved has been a C Corp since the beginning of these changes. Peyton provides for taxes at 25% of pretax income (20% Federal, 5% state).

	Trial Balance		Adjusting Entries		Adjusted TB
	DR	CR	DR	CR	DR	CR
Marketable Securities	5,500,000.00			265,000.00	5,235,000.00
Unrealized Gain/Loss	-		265,000.00		265,000.00
Deferred Tax Liability	-			?
Deferred Tax Expense	-		?

Answer rating: 100% (QA)

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