Question 1
1. Pretax financial income reported $60,000
2. Depreciation charged for tax purpose is $76,000 as well as Depreciation charged in the books is $60,000
3. Advanced rent received not familiar in books as income of 2013 but treated as income on the income tax return $5,400
4. Fines paid for pollution are charged as expenditure in income statement
5. Tax rate for current as well as future years 30% assuming that there are no deferred taxes at the beginning of 2013
a. calculate taxable income for 2013
b. Record journal entry to record income tax expense deferred income taxes as well as income tax payable for 2013
c. make income tax section of the income statement for 2013
Question 2
Hamilton Company makes us obtainable its financial data for the year 2012 here
1. Pretax financial income reported $50,000
2. Depreciation charged for tax purpose is $86,000 as well as Depreciation charged in the books is $50,000
3.Advanced rent received not recognized in books as income of 2013 however treated as income on the income tax return $6,400
4. Penalties paid for pollution are charged as expense in income statement
5. Tax rate for current as well as future years 30%
Presumptuous that there are no deferred taxes at the beginning of 2012
a. Calculate taxable income for 2012
b. Record journal entry to record income tax expense deferred income taxes and income tax payable for 2012
c. make income tax section of the income statement for 2012