5. (10 Points) For the year ended December 31, 2018, ABC Inc. reports pretax accounting...
80.2K
Verified Solution
Link Copied!
Question
Accounting
5. (10 Points) For the year ended December 31, 2018, ABC Inc. reports pretax accounting income of $488,500. Selected information for 2018 from ABC's records follows: Interest income on municipal bonds: Depreciation on the 2018 tax return in excess of depreciation on the income statement 27,500 Carrying amount of depreciable assets in excess of their tax basis at year-end Warranty expense reported on the income statement Actual warranty expenditures in 2018 $16,000 42,500 13,000 8,000 ABC's income tax rates 40%. At January 1, 2018, ABC has deferred tax asset of si 000 and deferred tax liability of S6,000. Required (1) Show the reconciliation from pretax accounting income to taxable income (2) Based on 1, prepare one jourmal entry to record ABC's tax provision for the year 2018
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!
