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please resolve both exercise in the picture. kindly show calculations E19-4 (Lo1,2 ) (Three Differences, Compute Taxable Income, Entry for Taxes) Zurich of $70,000 for
please resolve both exercise in the picture. kindly show calculations
E19-4 (Lo1,2 ) (Three Differences, Compute Taxable Income, Entry for Taxes) Zurich of $70,000 for 2017. The following items cause taxable income to be different than pretax financial income. Company reports pretax financia Depreciation on the tax return is greater than depreciation on the income statement by $16,000. 2. Rent collected on the tax return is greater than rent recognized on the income state 3. Fines for pollution appear as an expense of $11,000 on the income statement. ment by $22,000 h tax rate is 30% or all years, and the company expects to report taxable income in all future years. There are no deemed taxes at the beginning of 2017 Instructions (a) Compute taxable income and income taxes payable for 2017 (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017 (c) Prepare the income tax expense section of the income statement for 2017, beginning with the line "Income before income taxes (d) Compute the effective income tax rate for 2017 E19-5 (LO 1,2) (Two Temporary Differences, one Rate, Beginning Deferred Tares) The following facts relate to Kring Thep Corporation 1. Deferred tax liability, January 1,2017, S40,000 2. Deferred tax asset, January 1, 2017, S0 3. Taxable income for 2017, $95,000 4. Pretax financial income for 2017, $200,000 5. Cumulative temporary difference at December 31, 2017, giving rise to future taxable amounts, $240,000. 6. Cumulative temporary difference at December 31, 2017, giving rise to future deductible amounts, S35,000 7, Tax rate for all years, 40%. S. The company is expected to operate profitably in the future. Instructions ) Compute income taxes payable for 2017 (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 201 (c) Prepare the income tax expense section of the income statement for 2017, beginning with the line I re the income tax expense section of the income statement for 2017, beginning with the line "Income before income taxesStep by Step Solution
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