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I'm having an extremely hard time understanding income tax expense and income tax payable. Wouldn't you multiply net income by the tax rate percentage? I'm
I'm having an extremely hard time understanding income tax expense and income tax payable. Wouldn't you multiply net income by the tax rate percentage? I'm sure I'm missing a step somewhere. Can I get a step-by-step explanation on how to get the correct amount for income tax expense and income tax payable, please?
Check my work Required information [The following information applies to the questions displayed below.] Part 1 of 4 Val's Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2018, follows, along with information about selected accounts. 11.11 points Credit Account Names Cash Supplies Prepaid Rent Debit $ 3,100 3,600 3,900 eBook Accounts Payable $ 1,150 Further Information As reported on December 31 bank statement. Based on count, only $950 of supplies still exist. This amount was paid November 1 for rent through the end of January This represents the total amount of bills received for supplies and utilities through December 15. Val estimates that the company has received $380 of utility services through December 31 for which it has not yet been billed. Stylists have not yet been paid $100 for their work on December 31. The company has paid last year's income taxes but not this year's taxes. This amount was contributed for common stock in prior years. This is the balance reported at the end of last year. Customers pay cash when they receive services. Print Salaries and Wages Payable Income Tax Payable 1,300 700 64,450 28,400 Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Utilities Expense Rent Expense Supplies Expense Income Tax Expense Totals 11,500 13,000 4,100 This is the cost of stylist wages through December 30. This is the cost of utilities through December 15. This year's rent was $1,300 per month. This is the cost of supplies used through November 30. The company has an average tax rate of 25%. $67,600 $67,600Step by Step Solution
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