Based on a number of contracts in 2017 and 2018, Brangus
recognized $18,000 and $20,000 of...
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Accounting
Based on a number of contracts in 2017 and 2018, Brangusrecognized $18,000 and $20,000 of book income in 2017 and 2018 forbook purposes and $12,000 and $22.000 on those same contracts in2017 and 2018 for tax purposes. If the net income before tax in2018 was $50,000 and the tax rate is 36% in 2017, 34% in 2018 and32% in 2019, prepare the journal entry for income taxes for2018.
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Particulars As per Books Tax purpose Tax Rate Difference 2017 18000 12000 36 6000 2018 20000 22000 34 2000 2019 0 0 32 0 Deffered Tax Assest Means Advance Tax paid or excess tax paid by the company Deffered Tax Liability
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