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PLEASE SHOW ALL WORK!!! PLEASE SHOW ALL WORK!!! Part 2 The records for Patriots Inc. show the following data for calendar 2020: 1. Gross profit
PLEASE SHOW ALL WORK!!!
PLEASE SHOW ALL WORK!!!
Part 2 The records for Patriots Inc. show the following data for calendar 2020: 1. Gross profit on instalment sales recorded on the books was $ 100,000. Collections from the instalment receivables for the year were $ 50,000 2. Golf club dues were $ 4.000. 3. Machinery was acquired in January 2020 for $ 300,000. Patriots use straight-line depreciation over a ten-year life (no residual value). For tax purposes, CCA allowed is $42,000, ignoring the half-year rule. 4. Dividends received from a Canadian corporation were $ 3.800. 5. The estimated warranty liability related to 2020 sales was $ 19,600. Warranty repair costs paid during 2020 were $ 13,600. The remainder will be paid in 2021. 6. Pre-tax accounting income is $ 240,000. The enacted income tax rate is 26.5%. Instructions a) Prepare a schedule (starting with pre-tax accounting income) to calculate taxable income. (7 marks) b) Prepare the required adjusting journal entries to record income taxes for 2020. (6 marks)Step by Step Solution
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