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Data Relating to Brother Smith Corporation for 2018 follows:*' 1. Financial Income before tax was $100,000.+ 2. Prepaid Insurance on 12/31/2018 is $45,000. This insurance
Data Relating to Brother Smith Corporation for 2018 follows:*' 1. Financial Income before tax was $100,000.+ 2. Prepaid Insurance on 12/31/2018 is $45,000. This insurance coverage will be used up equally in 2019, 2020, and 2021.* 3. Depreciation schedules for financial and tax purposes follow on the company's only fixed asset, which was acquired on 1/1/2018: +- 2018 2019- 20,000-' 21,000-' 2020' 20,000-' 21,000-' 2021+ ^ 20,000'^ 21,000' Financial Depreciation'20,000-* Tax Depreciatione 17,000-' 4. Unearned Revenue on 1/1/2018 was $16,000, which was to be earned equally in 2018, 2019, 5. Assume that the enacted tax rate is 45%.4 Prepare the entry for taxes for 2018. (Follow the following order in answering the question: 1. 2020 and 2021.^ Taxes Payable, 2. Tax Table, 3. Tax Equation, and 4. J/E)*
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