A company has pretax income of $250,000 for the year. Included in pretax income are...
60.1K
Verified Solution
Link Copied!
Question
Accounting
- A company has pretax income of $250,000 for the year. Included in pretax income are the following:
- Warranty accrual of $50,000 of which none was actually paid.
- CEO salary expense of $1,100,000 of which only $1,000,000 is deductible for U.S. income tax purposes. The remaining $100,000 will never be deductible.
Assuming the tax rate is 40% record the journal entries required by ASC 740 purposes to record the tax provision for the year.
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.