Marcus, Inc. reported income before tax of $230,000 and taxable income was $270,000. This $40,000 difference was due to unearned revenues that the firm as revenue for tax purposes, but as a liability for book purposes. Marcus is subject to a 40% tax rate. a. What is the book basis of the unearned revenue? b. What is the tax basis of the unearned revenue? c. What are Marcus's deferred tax asset, income tax payable, and income tax expense for the current year? d. Prepare the journal entry to record the tax provision for the current year Book (GAAP) basis Tax basis Difference Unearned revenue 270000 230000 40000 40 Tax rate Deferred tax asset 16000 Now calculate Marcus's income tax payable for the current year Computation of Income Taxes Payable Choose from any list or enter any number in the input fields and then continue to the next question Marcus, Inc. reported income before tax of $230,000 and taxable income was $270,000. This $40,000 difference was due to unearned revenues that the firm recorde is revenue for tax purposes, but as a liability for book purposes. Marcus is subject to a 40% tax rate. a. What is the book basis of the unearned revenue? b. What is the tax basis of the unearned revenue? c. What are Marcus's deferred tax asset, income tax payable, and income tax expense for the current year? d. Prepare the journal entry to record the tax provision for the current year Computation of Income Taxes Payable Taxable income 270000 Tax rate Income taxes payable 108000 Calculate Marcus's income tax expense for the current year. If a box is not used in the table leave the box emply do not select a label or enter a zero ) Computation of Income Tax Expense Choose from any list or enter any number in the input fields and then continue to the next question Marcus, Inc. reported income before tax of $230,000 and taxable income was $270,000. This $40.000 difference was due to unearned revenues that the firm recorde as revenue for tax purposes, but as a liability for book purposes. Marcus is subject to a 40% tax rate a. What is the book basis of the unearned revenue? b. What is the tax basis of the unearned revenue? 6. What are Marcus's deferred tax asset, income tax payable, and income tax expense for the current year? d. Prepare the journal entry to record the tax provision for the current year Computation of Income Tax Expense Income before income taxes Tax rate 230000 Income tax expense 92000 Marcus, Inc reported income before tax of $230,000 and taxable income was $270,000. This $40,000 difference was due to unearned revenues that the fem recorder as revenue for tax purposes, but as a liability for book purposes. Marcus is subject to a 40% tax rate a. What is the book basis of the unearned revenue? b. What is the tax basis of the unearned revenue? C. What are Marcus's deferred tax asset, income tax payable, and income tax expense for the current year? d. Prepare the journal entry to record the tax provision for the current year Income tax expense 92000 d. Prepare the journal entry to record the tax provision for the current year. (Record debits first, then credits Exclude explanations from any journal entries) Account Income Tax Expense Current Year 92000 16000 108000 Deferred Tax Asset Income Taxes Payable
