Question
Jazzy Company reported 900,000 income before provisions for income tax during the current year. To compute the provision for income tax, the following data are
Jazzy Company reported 900,000 income before provisions for income tax during the current year.
To compute the provision for income tax, the following data are provided:
Rent received in advance | 150,000 |
Interest income on time deposit (permanent difference) | 200,000 |
Depreciation deducted for income tax purposes in excess of depreciation for financial statement purposes | 100,000 |
Estimated tax payment in the current year | 125,000 |
Income tax rate | 30% |
What amount of income tax payable should be reported at year-end? Show your solution.
a. 210,000
b. 225,000
c. 125,000
d. 100,000
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