Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. kahan enterprises had gross profit on an installme

Kahan Enterprises had gross profit on an installment sale of $600,000 at December 31,20x1, the...

50.1K

Verified Solution

Question

Accounting

Kahan Enterprises had gross profit on an installment sale of $600,000 at December 31,20x1, the end of its first period of operations. It will collect two-thirds of the amount in 202 and the last third in 203. Kahan reported pre-tax financial income of $2,400,000 on 20X1. Its tax rate is 20%. The journal entry to accrue Kahan's income tax expense for 201 will include
a credit to Income Tax Payable for $600,000.
a credit to Deferred Tax Liability for $120,000.
a debit to Deferred Tax Liability for $80,000.
a debit to Income Tax Expense for $360,000.
image

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students

Medical Sciences
1.2K views

6. Describe how increases and decreases in each of the following shift the binding affinity of...

Biology
1.2K views

Please list and briefly explain the two main processes of an ecosystem

Basic Math
1.2K views

If the population of a country increases at a rate of 1.5% annually and its...

Calculus
1.2K views

the Fundamental Theorem of Calculus to evaluate the following definite integral 2 1 0 5...

Calculus
1.2K views

Determine a coterminal angle of 660.

Accounting
1.2K views

Scenario: You were recently hired by a $35 million manufacturing company ($35 million in sales)...

Accounting
1.2K views

if you could do all parts please expects to sell...

Accounting
1.2K views

On May 1, 1989, Brendan McLeod and Duncan Ryan formed Angler Corporation to sell fishing...

Accounting
1.2K views

Lana Company purchased treasury shares with a cost of $40,000 during 2020. During the year,...

Accounting
1.2K views

Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. Data concerning the...

Accounting
1.2K views

Ronan Industries needed to buy a piece of equipment, so it was financed for five...

Finance
1.2K views

A firm just paid a dividend of $0.50 per share. Dividends are expected to grow...