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  3. rqp company has pretax financial income of $100,00

RQP Company has pretax financial income of $100,000 for 2016, the first year of operations....

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Accounting

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RQP Company has pretax financial income of $100,000 for 2016, the first year of operations. The life insurance premiums relate to key officers and the beneficiary is the company. The tax rate for 2016 is 30% and no new rate has been enacted for future years. Following are the differences between revenues and expenses reported on the tax return and the income statement in 2016: Depreciation expense Warranty expense Rent revenue Life insurance premium expense for key officers Interest revenue from municipal bonds Tax Return $90,000 20,000 7,400 I/S $57,000 39,000 4,000 6,000 1,500 Calculate taxable income for 2016: Prepare the 2016 journal entry to record income taxes

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