1 2 3 4 5 Sales Revenue 6 Fixed Asset Purchase - 3 year life for 7 book depreciation, 5 year life for 8 tax depreciation (Straight line) 9 Tax-Exempt Income 10 Entertainment Expenses The corporation had the following income and expense items for the corresponding tax years: 11 Advertising Expenses 12 Wage expenses 13 Income Tax Rate 2020 500,000 40,000 15,000 10,000 40,000 200,000 10% 2021 500,000 50,000 14,000 5,000 40,000 220,000 10% 14 15 (a) Calculate book income for 2020 (3 points) 16 (b) Calculate taxable income for 2020 (3 points) 17 (c) Make the required journal entries for the 2020 financial statements (6 points) 18 (d) Calculate the book income for 2021 (3 points) 19 (e) Calculate taxable income for 2021 (3 points) 20 (d) Make the required book journal entries for the 2021 financial statements (7 points) 21 22

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Here are the steps to solve this multipart corporation tax problem a Calculate book income for 2020 ... View the full answer