Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $600,000 and with...
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Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $600,000 and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is 40%,30%,20%, and 10% in hose years. Pretax accounting income the first year the equipment was used was $700,000, which includes interest revenue of $15,000 from municipal governmental bonds. Other than the two described, there are no differences between accounting income and axable income. The enacted tax rate is 25%. Prepare the journal entry to record income taxes. (If no entry is required for a transaction/event, select "No journal entry required" n the first account field.) Journal entry worksheet Note: Enter debits before credits
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Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $600,000 and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is 40%,30%,20%, and 10% in hose years. Pretax accounting income the first year the equipment was used was $700,000, which includes interest revenue of $15,000 from municipal governmental bonds. Other than the two described, there are no differences between accounting income and axable income. The enacted tax rate is 25%. Prepare the journal entry to record income taxes. (If no entry is required for a transaction/event, select "No journal entry required" n the first account field.) Journal entry worksheet Note: Enter debits before credits 