I have read several postings on this same problem and no one seems to answer the question, "How do you calculate the amount for Income Taxes Currently Payable and Income Taxes?" I am assuming the correct answer is $118,200.25 as this seems to be the trend on the other postings. I am including the information on this problem and the calculations I have. I don't want only the answer, I need to know how so I may understand how to do a similar problem. I need to know how to calculate the Income Taxes Currently Payable and Income Taxes.

ACC 309 Final Project Scenario Peyton Approved Overview Imagine that you are working as a financial accountant for Peyton Approved, and you have been charged with revising its financial information. The company has experienced tremendous growth in the past three years, and it is now a well-known bakery chain for pet products. They have become a publicly traded company and have several locations that they deliver to regionally. You will find the companys financial information in the Peyton Approved Balance Sheet and Income Statement. This document will need revisions and appropriate notes added in order to prepare for the year-end audit accordingly. In addition to ensuring that the balance sheet is ready for the year-end audit, you will address other major areas of need, including: Assessing tax implications Evaluating and explaining stockholder equity Accounting for postretirement benefits (The amounts would be determined by actuaries.) Assessing impacts of leases Peyton Approved Financial Information Comprehensive income items Marketable securities on the balance sheet at a cost of $5,500,000 are available-for-sale Market value at the balance sheet date is $5,235,00 Prepare the adjusting entry to record the unrealized loss and include in comprehensive income Tax information and implications $1,500 in meal and entertainment expenses show as a permanent difference for tax. Prepare the necessary adjusting entry. The company uses straight line depreciation for book and MACRS depreciation for the tax return MACRS depreciation was $209,301 higher than book. Prepare the adjusting entry for the deferred tax. There have been recent tax structure changes the could impact the company. Peyton Approved has been a C Corp since the beginning of these changes. Peyton provides for taxes at 25% of pretax income (20% Federal, 5% state).

I. Workbook A. Prepare adjusting entries for unrealized loss and tax issues. I may have duplicated some of the lines when I cropped and pasted.

1. Marketable Securities subtracted cost of $5500000 from balance sheet amount of $5235000 which equals $265,000. Which is a credit under the adjusting entries. My Calculations for the Comprehensive Income Items and Tax Information and Implications Sections of the above scenario:

2. Multiplied meal and entertainment of $1500 by taxes of 25% which equals $375.00. Not sure if this is correct.

3. Multiplied the MACRS depreciation of $209,301 by 25% which equals $52,325.25

Multiplied the book depreciation value of $265,000 by 25% which equals $66,250.00

Added the two depreciation values of $52,325.25 plus $66,250.00 which equals $118,575.25. Making the Adjusted Journal Entry a debit for Deferred Tax Expense and a credit for Deferred Tax Liability.

NOW, WHAT I AM MISSING AND CAN'T FIGURE OUT IS THE INCOME TAXES CURRENTLY PAYABLE AND INCOME TAXES.

1 2 3 4 Adjusting entries Dr Cr Cr 5 6 1 265,000.00 7 8 9 PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Dr Cr 1,488,999.34 5,500,000.00 7,092,495.88 1,605,098.52 128,152.63 71,877.07 207,834.14 17,647.42 250,000.00 1,250,000.00 2,254,140.00 Cash Marketable Securities Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc. Supplies Land Building Baking Equipment Dr 1,488,999.34 5,235,000.00 7,092,495.88 1,605,098.52 128,152.63 71,877.07 207,834.14 17,647.42 250,000.00 1,250,000.00 2,254,140.00 10 11 12 13 14 15 16 17 328,282.00 328,282.00 18 19 Accumulated Depreciation Patent Accounts Payable Wages Payable Interest Payable Current Portion of Bonds Payable 20 21 1,555,212.85 250,203.31 21.888.22 1,000,000.00 1,555,212.85 250,203.31 21,888.22 1,000,000.00 22 1,000,000.00 1,042,118.16 1,000,000.00 1,042,118.16 22 23 24 25 26 27 28 29 Current Portion of Bonds Payable Income Taxes Currently payable Accrued Pension Liability Accrued Employees Health Insurance Lease Liability 3 118,575.25 30 4,000,000.00 500,000.00 1,750,000.00 2,213, 122.59 118,575.25 4,000,000.00 500,000.00 1,750,000.00 2,213,122.59 50,000.00 5,250,000.00 50,000.00 5,250,000.00 31 32 33 34 35 36 37 38 39 40 41 Deferred Tax Liability Bonds Payable Preferred Stock Common Stock Beginning Retained earnings Dividends - Preferred Dividends - Common Bakery Sales Merchandise Sales Cost of Goods Sold - Baker Cost of Goods Sold - Merch Rent Expense Wages Expense Misc. Supplies Expense Repairs and Maintenance Business license Expense 33,881,157.15 124,795.80 33,881,157.15 124,795.80 10.954.907.36 88,994.79 1,576,731.95 2,604,526.23 263,224.56 47.353.05 211 757 65 10,954,907.36 88,994.79 1,576,731.95 2,604,526.23 263,224.56 47,353.05 211 757 65 42 43 39 40 41 42 43 44 45 46 Rent Expense Wages Expense Misc. Supplies Expense Repairs and Maintenance Business License Expense Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Pension Expense Retired Employees Health Ins Patent Amortization 1,576,731.95 2,604,526.23 263,224.56 47,353.05 211,757.65 141,171.08 634,520.00 112,937.69 160,413.49 484,703.27 50,821.34 1,576,731.95 2,604,526.23 263,224.56 47,353.05 211,757.65 141,171.08 634,520.00 112,937.69 160,413.49 484,703.27 50,821.34 47 48 49 50 51 52 53 54 55 56 57 58 59 Unrealized Gain/(Loss) on Marketable Securities Held for Sale 1 265,000.00 265,000.00 4,168,472.62 Income Taxes Deferred Tax Expense 4,168,472.62 118,575.25 118,575.25 46,666,780.08 46,666,780.08 383,575.25 383,575.25 46,785,355.33 46,785,355.33