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R.S. reported pre-tax accounting income in 2017, 2018, and 2019 of $80 million, plus an additional...

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Accounting

R.S. reported pre-tax accounting income in 2017, 2018, and 2019of $80 million, plus an additional 2017 income of $50 million frominstallment sales of property. However, the installment salesincome is reported on the tax return when collected, in 2018 ($20million) and 2019 ($30 million). The enacted tax rate is 40% eachyr. Prepare the table calculating the annual tax payable for eachyr. Prepare the journal entry for each yr.

............................. ..................... Current yr..................Future Taxable amounts...........................Future Taxable Amount (total)

..................................................... 2017.............................2018 ................2019

Pretax accounting income:

Temporary difference:

Installment income

Taxable income (tax return)

Enacted tax rate:

Tax payable currently:

Answer & Explanation Solved by verified expert
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Solution Computation of Taxable Income and Income Tax Payable In million Particulars 2017 2018 2019 Pretax accounting income 8000 8000 8000 Less Income from    See Answer
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