On January 1, the company purchased investment securities for $1,000. The securities are classified as trading. By
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On January 1, the company purchased investment securities for $1,000. The securities are classified as trading. By December 31, the securities had a fair value of $1,800 but had not yet been sold. Excluding the trading securities, income before taxes for the year was $10,000. Assume that there are no other book-tax differences. The income tax rate is 35% for the current year and all future years. Prepare the journal entry or entries necessary to record income tax expense for the year.
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Income Tax Expense 3780 Income Tax Payable 3500 ...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 978-0324592375
17th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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