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Details please. Computation of taxable income. The records for Bosch Co. show this data for 2015: Gross profit on installment sales recorded on the books
Details please. Computation of taxable income. The records for Bosch Co. show this data for 2015: Gross profit on installment sales recorded on the books was $420,000. Gross profit from collections of installment receivables was $280,000. Life insurance premium expense was $3, 800. Machinery was acquired in January for $300,000. Straight-line depreciation over a ten-year life (no salvage value) is used for books. For tax purposes, MACRS depreciation is used and Bosch may deduct 14% for 2015. Bosch Co was fined by the State Department $259,000 for improper exporting. The estimated warranty liability related to 2015 sales was $21, 600. Repair costs under warranties during 2015 were $13, 600. The remainder will be incurred in 2016. Pretax financial income is $600,000. The tax rate is 30%. (a) Prepare a schedule comparing book income to IRS income (b) Prepare the journal entry to record income taxes for 2015
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