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The Following Account Balances Have Been Taken from the December

Question 86

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The following account balances have been taken from the December 31, 2010, records of Schorg Company:
The following account balances have been taken from the December 31, 2010, records of Schorg Company:    Required: A)	Prepare the appropriate December 31 closing entries for Schorg Company. B)	Why did the company show no Income Tax Expense for 2010? C)	What is the year-end balance of Retained Earnings for Schorg Company?

Required:
A) Prepare the appropriate December 31 closing entries for Schorg Company.
B) Why did the company show no Income Tax Expense for 2010?
C) What is the year-end balance of Retained Earnings for Schorg Company?

Correct Answer:

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b. Schorg Company had no inco...

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