Smith is an accountant in South Company. He reported a pretax financial income of $2,800,000, current tax of $1,001,000 and deferred tax of $168,000 in the income statement at year ended December 31, 2019. In order for you to check the given number, you have obtained the following information: Nontaxable dividends of $ 120,000 was received during 2019, On January 3, 2018, the company purchased machinery for $2,400,000. It is depreciated using straight-line method over 8 years for financial reporting purposes and over 5 years for tax purposes. The company is allowed to report half of the depreciation expense amount in the first year and the other half in 2023 for tax purposes. Tax rate is 35% for all years. (1) check the given tax numbers (2) provide necessary entry to record income taxes for 2019 (3) show how the recorded accounts are presented on 2019 income statement
Smith is an accountant in South Company. He reported a pretax financial income of $2,800,000, current tax of $1,001,000 and
(1) check the given tax numbers
(2) provide necessary entry to record income taxes for 2019
(3) show how the recorded accounts are presented on 2019 income statement
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