A company facing a 45% tax rate has calculated its taxable income for the year to be $2,100,000.It made installment payments during the year totalling $995,000; this amount has been recorded in an asset account as "income tax installments"
Requirement:
Prepare the journal entry to record the adjusting entry for income taxes at the end of the year under the taxes payable method.

Question

Quizplus · Accepted Answer

The Answer of A company facing a 45% tax rate has calculated its taxable income for the year to be $2,100,000.It made installment payments during the year totalling $995,000; this amount has been recorded in an asset account as "income tax installments"
Requirement:
Prepare the journal entry to record the adjusting entry for income taxes at the end of the year under the taxes payable method.

A Company Facing a 45% Tax Rate Has Calculated Its