Use the following information for questions 58 through 60.
Hopkins Co. at the end of 2014, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: The estimated litigation expense of $2,000,000 will be deductible in 2015 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1,000,000 in each of the next three years. The income tax rate is 30% for all years.
-Income taxes payable is

Question

Use the following information for questions 58 through 60.
Hopkins Co. at the end of 2014, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:  The estimated litigation expense of $2,000,000 will be deductible in 2015 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $1,000,000 in each of the next three years. The income tax rate is 30% for all years.
-Income taxes payable is

Quizplus · Accepted Answer

Income taxes payable are recognized as a liability on the balance sheet for the amount of income taxes due to the government within the next year. The correct amount, without additional context or calculations provided in the question, cannot be determined. However, if option B) $150,000 is presented as the correct answer, it suggests that based on the given or calculated taxable income and the applicable tax rate, the entity owes $150,000 in income taxes.

Use the Following Information for Questions 58 Through 60