Question
E18-11 For the year ended December 31, 2019, Nelson Co.s income statement showed an income of $435,000 before income tax expenses. To compute the taxable
E18-11
For the year ended December 31, 2019, Nelson Co.s income statement showed an income of $435,000 before income tax expenses. To compute the taxable income, the following differences were noted:
Income from tax-exempt municipal bonds $60,000 |
Depreciation deducted for tax purposes in excess of depreciation recorded on the books $120,000 |
Proceeds received from life insurance on death of an insured employee $100,000 |
Corporate tax rate for 2019 30% |
Enacted tax rate for future periods 35% |
Required:
Prepare Nelsons income tax journal entry at the end of 2019
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started