Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following is selected information from the acc

The following is selected information from the accounting records of Slow Inc. for 20X9 its...

80.2K

Verified Solution

Question

Accounting

The following is selected information from the accounting records of Slow Inc. for 20X9 its first year of operations:
Earnings before income taxes $680,000
In determining pre-tax accounting earnings, the following deductions were made:
a. Golf club dues 22,000
b. Accrued warranty costs 59,000
c. Depreciation 72,000
For tax purposes, the following deductions were made:
a. Warranty costs incurred 42,000
b. CCA 144,000
The capital assets, originally costing $720,000, are depreciated on a straight-line basis over 10 years, zero residual value, with a full year of depreciation taken in 20X9 as the assets were purchased at the start of the year. The tax rate is 35%.
Required:
Slow Inc. is a public company. Prepare the journal entry to record income tax at the end of 20X9.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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