a) Prepare a Schedule starting with pretax financial income and compute taxable income. b)...
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Accounting
a) Prepare a Schedule starting with pretax financial income and compute taxable income.
b) prepare the journal entry to record income tax for 2017.
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The records for Butch Co. show this data for 2017: Gross ded on the books was $360,000, Gross profit from collections of 7 installment receivables was $240,000 Life insurance on officers was $2.000 Machinery was acquired in January for $300,000. sprofit on installment sales recor traight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes , MACRS depreciation is used and Bosch may deduct $42,000 for 201 Interest received on tax exempt lowa State bonds was $9,000 e estimated warranty liability related to 2017 sales was $20,000. Repair costs paid under warranties during 2017 were $12,000. The remainder will be incurred in 2018. Pretax financial income is $500.00 The enacted tax rate is 30%
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