(18 pts) Part 4:Provision for Taxes - Quarterly Entries Bass Corporation's actual earnings for the first...

 

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(18 pts) Part 4:Provision for Taxes - Quarterly Entries Bass Corporation's actual earnings for the first two quarters of 2016 and its estimate during each quarter of its annual earnings are: Actual first-quarter earnings Actual second-quarter earnings First-quarter estimate of annual earnings Second-quarter estimate of annual earnings $200,000 $ 255,000 $ 675,000 $710,000 and taxable income for 2016 as: $ 12,500 $ 90,000 Bass estimated its differences between book (accounting) Environmental violation penalties Dividend income exclusion Note: These estimates did not change during the second quarter. The combined tax rate for Bass for 2016 is 42%. Prepare the journal entries to record Bass' tax provision for each of the first two quarters of 2016. Show all work! (18 pts) Part 4:Provision for Taxes - Quarterly Entries Bass Corporation's actual earnings for the first two quarters of 2016 and its estimate during each quarter of its annual earnings are: Actual first-quarter earnings Actual second-quarter earnings First-quarter estimate of annual earnings Second-quarter estimate of annual earnings $200,000 $ 255,000 $ 675,000 $710,000 and taxable income for 2016 as: $ 12,500 $ 90,000 Bass estimated its differences between book (accounting) Environmental violation penalties Dividend income exclusion Note: These estimates did not change during the second quarter. The combined tax rate for Bass for 2016 is 42%. Prepare the journal entries to record Bass' tax provision for each of the first two quarters of 2016. Show all work!

Answer rating: 100% (QA)

Particulars Amount Estimated Annual Earnings 675000 Add Environmental Violation Penalties 12500 Dedu... View the full answer