A company's income statement reported net income of $80,000 during 2010.The income tax return excluded a revenue item of $10,000 (reported on the income statement)because under the tax laws the $10,000 would not be reported for tax purposes until 2011.
Prepare the journal entry to record the 2010 income tax expense assuming a 40% tax rate.

Question

Quizplus · Accepted Answer

The Answer of A company's income statement reported net income of $80,000 during 2010.The income tax return excluded a revenue item of $10,000 (reported on the income statement)because under the tax laws the $10,000 would not be reported for tax purposes until 2011.
Prepare the journal entry to record the 2010 income tax expense assuming a 40% tax rate.

A Company's Income Statement Reported Net Income of $80,000 During