Southern Atlantic Distributors began operations in January 2018 and purchased a delivery truck for $40,000. Southern...

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Southern Atlantic Distributors began operations in January 2018 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2018, 30% in 2019, and 20% in 2020. Pretax accounting income for 2018 was $260,000, which includes interest revenue of $30,000 from municipal bonds. The enacted tax rate is 30%. Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table given below and prepare the journal entry to record income taxes in 2018. 2. What is Southern Atlantic's 2018 net income? Required 1 Calculation Required 1 GJ Required 2 Required 1 GJ Complete the following table given below to record income taxes in 2018. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.) Tax Rate % Тax $ Recorded as: Pretax accounting income $ 260 Permanent difference Income subject to taxation 260 Temporary difference Income taxable in current year $ 260 Required 1 Calculation Required 1 GJ II II Required 1 Calculation Required 1 GJ Required 2 Prepare the journal entry to record income taxes in 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.) View transaction list Journal entry worksheet 1 > Record 2018 income taxes. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Required 1 Calculation Required 1 GJ Required 2 What is Southern Atlantic's 2018 net income? (Enter your answer in thousands.) Net income Required 1 GJ Required 2 > Southern Atlantic Distributors began operations in January 2018 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2018, 30% in 2019, and 20% in 2020. Pretax accounting income for 2018 was $260,000, which includes interest revenue of $30,000 from municipal bonds. The enacted tax rate is 30%. Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table given below and prepare the journal entry to record income taxes in 2018. 2. What is Southern Atlantic's 2018 net income? Required 1 Calculation Required 1 GJ Required 2 Required 1 GJ Complete the following table given below to record income taxes in 2018. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.) Tax Rate % Тax $ Recorded as: Pretax accounting income $ 260 Permanent difference Income subject to taxation 260 Temporary difference Income taxable in current year $ 260 Required 1 Calculation Required 1 GJ II II Required 1 Calculation Required 1 GJ Required 2 Prepare the journal entry to record income taxes in 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.) View transaction list Journal entry worksheet 1 > Record 2018 income taxes. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Required 1 Calculation Required 1 GJ Required 2 What is Southern Atlantic's 2018 net income? (Enter your answer in thousands.) Net income Required 1 GJ Required 2 >

Answer rating: 100% (QA)

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