PRINCIPLES OF TAXATION F/BUS...(LL)
23rd Edition
ISBN: 9781260433197
Author: Jones
Publisher: MCG
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Chapter 8, Problem 28AP
To determine
Calculate Corporation L’s taxable income for the following assumptions regarding tax consequence of the asset sales.
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Parker Company identifies depreciation as the only difference for future taxable amounts. In Year 1, its depreciation for financial reporting purposes is $9,000 and $10,500 for income tax reporting purposes. Parker has an income tax rate of 35%. Assume that Parker’s taxable income for Year 1 is $150,000.
Required:
Prepare the journal entry to record Parker’s income tax expense.
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