intermediat accouting

Question 3: (8 marks) The following information is for Hulk corporation for its first year of operations for the year 2015. Hulk's Pretax accounting income for 2015 was $ 62 million, which also included the following amounts: - Prepaid insurance is $12 million paid in 2015, but for tax purpose, the deduction will be equally in the years 2015, 2016, 2017 and 2018; b. Installment recognized for financial reporting purposes in 2015 was $ 25 million, which will be equally collected over the 3 next years (2016 to 2018); Interest revenue of $2 million from municipal bonds; 4- Charitable donation of $ 500,000 recognized as expense, but not deductible for tax purposes. The enacted tax rate is 40 % Instructions: 1. Compute income tax expense for 2015 Hulk's corporation. (5 marks) 2. Prepare the appropriate journal entry to record Hulk's 2015 income tax expense. (1 mark) 3. Prepare the income tax expense section of income statement for 2015, beginning with the line "Income before income taxes" (2 marks)