On the worksheet for the current year ended Dec 31, column totals in the Income Statement section are debit, $179,000 and credit $224,000. Assume that the income and deductions for tax purposes are the same as those for financial reporting and that the company paid estimated taxes of $5,000 to date. Tax rates are 15% for the first $50,000; 25% on the next 25,000; 34% on the next $25,000 and 39% on the excess over $100,000. Prepare the adjusting entry for income taxes.

Question

Quizplus · Accepted Answer

The Answer of On the worksheet for the current year ended Dec 31, column totals in the Income Statement section are debit, $179,000 and credit $224,000. Assume that the income and deductions for tax purposes are the same as those for financial reporting and that the company paid estimated taxes of $5,000 to date. Tax rates are 15% for the first $50,000; 25% on the next 25,000; 34% on the next $25,000 and 39% on the excess over $100,000. Prepare the adjusting entry for income taxes.

On the Worksheet for the Current Year Ended Dec 31