Company P had pretax profit of $30,000 in 20X0 and $34,000 in 20X1. A revenue of $2,000 was included correctly on the 20X0 income statement and was properly reported on the 20X1 income tax return. The corporate income tax rate was 25%. Give the entries relating to the incurrence of the tax liability for 20X0 and 20X1: 20X0: 20X1:

Question

Quizplus · Accepted Answer

The Answer of Company P had pretax profit of $30,000 in 20X0 and $34,000 in 20X1. A revenue of $2,000 was included correctly on the 20X0 income statement and was properly reported on the 20X1 income tax return. The corporate income tax rate was 25%. Give the entries relating to the incurrence of the tax liability for 20X0 and 20X1: 20X0: 20X1:

Company P Had Pretax Profit of $30,000 in 20X0 and $34,000