Harley Davidson Motorcycles has c income of $2,000,000 in years 2017, 2018, and 2019. NOT inclusive of
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Question:
Harley Davidson Motorcycles has c income of $2,000,000 in years 2017, 2018, and 2019. NOT inclusive of this amount, they sell and collect 2 year extended warranties in the amount of $400,000 in 2017. Based on past experience, it is deemed that 60% of this amount is earned in the year subsequent to cash payment (2018) and 40% is earned in the final year of the warranty (2019).
Required:
Schedule Financial Income and Taxable Income; prepare journal entries to record tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. Assume a corporate tax rate of 40% for all years.
Related Book For
Microeconomics
ISBN: 9781319105563
3rd edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
Posted Date: