Account for a corporation's income tax
Response to the following problem:
Elam Marine, Inc., had income before income tax of $171,000 and taxable income of $152,000 for 2014, the company's first year of operations. The income tax rate is 30%.
1. Make the entry to record Elam Marine's income taxes for 2014.
2. Show what Elam Marine will report on its 2014 income statement, starting with income before income tax. Also show what Elam Marine will report for current and long-term liabilities on its December 31, 2014, balance sheet.