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2020 2021 Sales Revenue 500,000 500,000 Fixed Asset Purchase - 3 year life for book depreciation, 5 year life for tax depreciation (Straight line) 40,000
| 2020 | 2021 | |||
| Sales Revenue | 500,000 | 500,000 | ||
| Fixed Asset Purchase - 3 year life for | ||||
| book depreciation, 5 year life for | ||||
| tax depreciation (Straight line) | 40,000 | 50,000 | ||
| Tax-Exempt Income | 15,000 | 14,000 | ||
| Entertainment Expenses | 10,000 | 5,000 | ||
| Advertising Expenses | 40,000 | 40,000 | ||
| Wage expenses | 200,000 | 220,000 | ||
| Income Tax Rate | 10% | 10% | ||
| (a) Calculate book income for 2020 (3 points) | ||||
| (b) Calculate taxable income for 2020 (3 points) | ||||
| (c) Make the required journal entries for the 2020 financial statements (6 points) | ||||
| (d) Calculate the book income for 2021 (3 points) | ||||
| (e) Calculate taxable income for 2021 (3 points) | ||||
| (d) Make the required book journal entries for the 2021 financial statements (7 points) | ||||
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Financial Accounting Information For Decisions
Authors: John J. Wild
10th Edition
9781260705584
