ABC Inc. has asked you to assist in the completion of their 2018 tax provision. They...

Transcribed Image Text:

ABC Inc. has asked you to assist in the completion of their 2018 tax provision. They have provided you with the following information; NBV at 12/31/2017 $600,000 UCC at 12/31/2017 320,000 Warranty provision 80,000 Tax rate 45% The following transactions occurred during 2018: Income before taxes $1,600,000 Depreciation 160,000 Warranty provision 50,000 Actual warranty expenditures 70,000 Class 8 additions 200,000 Disallowed entertainment 75,000 Dividends from a taxable Canadian corporation 100,000 REQUIRED 1. Prepare a reconciliation of accounting income to income for tax purposes 2. Prepare the journal entries to record the 2018 tax provision ABC Inc. has asked you to assist in the completion of their 2018 tax provision. They have provided you with the following information; NBV at 12/31/2017 $600,000 UCC at 12/31/2017 320,000 Warranty provision 80,000 Tax rate 45% The following transactions occurred during 2018: Income before taxes $1,600,000 Depreciation 160,000 Warranty provision 50,000 Actual warranty expenditures 70,000 Class 8 additions 200,000 Disallowed entertainment 75,000 Dividends from a taxable Canadian corporation 100,000 REQUIRED 1. Prepare a reconciliation of accounting income to income for tax purposes 2. Prepare the journal entries to record the 2018 tax provision

Answer rating: 100% (QA)

1 Income before taxes 1600000 Depreciation 160000 Warran... View the full answer