Refer to the data in Problem 34 at the end of Chapter 3 for the Acme Construction

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Refer to the data in Problem 34 at the end of Chapter 3 for the Acme Construction Company. Use the methods of accounting indicated below for financial statements and for tax returns. Assume an income tax rate of 40 percent. Compute income tax expense, income taxes payable, and deferred income taxes for each year. Put this information into journal entry form for each year.

a Use the percentage-of-completion method on the financial statements and the completed-contract method on the tax return.

b Use the cost-recovery-first method on the financial statements and the installment method on the tax return.

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Financial Accounting An Introduction To Concepts Methods And Uses

ISBN: 9780030452963

2nd Edition

Authors: Sidney Davidson, Roman L. Weil, Clyde P. Stickney

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