Itchy Company's actual earnings for the first two quarters of 2017 and its estimate during each quarter of its annual earnings are:

Itchy Company estimated its permanent differences between accounting income and taxable income for 2017 as: These estimates did not change during the second quarter. The combined state and federal tax rate for Itchy Company for 2017 is 40%.
Required:
Prepare journal entries to record Itchy Company's provisions for income taxes for each of the first two quarters of 2017.

Question

Itchy Company's actual earnings for the first two quarters of 2017 and its estimate during each quarter of its annual earnings are:

Itchy Company estimated its permanent differences between accounting income and taxable income for 2017 as:  These estimates did not change during the second quarter. The combined state and federal tax rate for Itchy Company for 2017 is 40%.
Required:
Prepare journal entries to record Itchy Company's provisions for income taxes for each of the first two quarters of 2017.

Quizplus · Accepted Answer

The Answer of Itchy Company's actual earnings for the first two quarters of 2017 and its estimate during each quarter of its annual earnings are:

Itchy Company estimated its permanent differences between accounting income and taxable income for 2017 as:  These estimates did not change during the second quarter. The combined state and federal tax rate for Itchy Company for 2017 is 40%.
Required:
Prepare journal entries to record Itchy Company's provisions for income taxes for each of the first two quarters of 2017.

Itchy Company's Actual Earnings for the First Two Quarters of 2017