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only need to solve the account and explanantion part.. Problem 19-4 The accounting records of Nash Inc. show the following data for 2017 (its first
only need to solve the account and explanantion part.. Problem 19-4 The accounting records of Nash Inc. show the following data for 2017 (its first year of operations). 1. Life Insurance expense on officers was $9,900. 2. Equipment was acquired in early January for $288,000. Straight line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Nash used a 30% rate to calculate depreciation. 3. Interest revenue on State of New York bonds totaled $4,300. 4. Product warranties were estimated to be $51,100 in 2017. Actual repair and labor costs related to the warranties in 2017 were $9,300. The remainder is estimated to be paid evenly in 2018 and 2019. 5. Gross profit on an accrual basis was $110,000. For tax purposes, $73,200 was recorded on the installment sales method. 6. Fines incurred for pollution violations were $4,500. 7. Pretax financial income was $713,600. The tax rate is 30% s Your answer is correct. Prepare a schedule starting with pretax financial income in 2017 and ending with taxable income in 2017. (Ente the number e.g.-45 or parentheses e.g. (45).) Schedule of Pretax Financial Income and Taxable Income for 2017 Pretax financial income 713600 Y Permanent differences Insurance Expense 9900 Bond Interest Revenue -4300 Pollution Fines 4500 723700 Temporary differences Depreciation Expense > -28800 Installment Sales
only need to solve the account and explanantion part..
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