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Operating expenses for Year 7 include the following: ISAA pledged $5,000 to charity and paid the $5,000 in February of the following year. Estimate of
Operating expenses for Year 7 include the following: ISAA pledged $5,000 to charity and paid the $5,000 in February of the following year. Estimate of $15,000 for bad debts. Actual bad debts for the year amounted to $10,000. Key employee life insurance premiums of $4,000. ISAA is the beneficiary of the policies. State income taxes of $12,000. ISAA estimated federal income tax payments of $30,000. These payments were debited to prepaid tax expense on ISAA's books. ISAA declared and paid dividends of $10,000. ISAA was not subject to the alternative minimum tax. ISAA paid its employees (nonofficers) $100,000 during the year
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