Bosch Co.'s records show the below data for 2015:

• Gross profit from installment sales recorded in books was $420,000. Gross profit from installment debt collections was $280,000 for tax purposes.
• The machine was purchased in January for $300,000. For financial reporting, straight-line depreciation (no salvage value) over a ten-year life is used. For tax purposes, MACRS depreciation is 42,000 for 2015. Interest received on tax-free Iowa State bonds was $9,000. The pre-tax financial income is $600,000. The tax rate is 30%.

1) Find out the taxable income for 2015.

2) Prepare the journal entry to record income taxes for 2015.

Answer rating: 100% (QA)

Answer 1 Taxable Income for 2015 Pretax financial income Gross prof... View the full answer