Answered: Joseph income from various souces are $…

Joseph income from various souces are $ 75500 LTCG is $ 510000 Exemption cannot be $ 180000 Tax rate is 20 % for the year 2017 - 2018. show income tax payable amount. and prepare journal entry.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 42BE: Accrued Income Taxes Nolan Inc. had taxable income of $400,000 in 2019. Its effective tax rate is...

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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

Joseph income from various souces are $ 75500
LTCG is $ 510000
Exemption cannot be $ 180000
Tax rate is 20 % for the year 2017 - 2018.
show income tax payable amount.
and prepare journal entry.

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