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Southern Atlantic Distributors began operations in January 2018 and purchased a delivery truck for $40,000....

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Accounting

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Southern Atlantic Distributors began operations in January 2018 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2018, 30% in 2019, and 20% in 2020 Pretax accounting income for 2018 was $260,000, which includes interest revenue of $30,000 from municipal bonds. The enacted tax rate is 30%. Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table given below and prepare the journal entry to record income taxes in 2018 2. What is Southern Atlantic's 2018 net income? 3 Answer is not complete. Complete this question by entering your answers in the tabs below. Required i Calculation Required 1 G) Required 2 Complete the following table given below to record income taxes in 2018. (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.) Tax Tax $ Recorded as Pretax accounting income Permanent difference Income subject to taxation S 260 (30,000) (29,740) x ncome taxable in current year 29740)

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