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please sovle Check my work In its first year of operations, Martha Enterprises Corp. reported the following information: a. Income before income taxes was $570,000.
please sovle
Check my work In its first year of operations, Martha Enterprises Corp. reported the following information: a. Income before income taxes was $570,000. b. The company acquired capital assets costing $1,700,000; depreciation was $118,000, and CCA was $85,000. C. The company recorded an expense of $120,000 for the one-year warranty on the company's products; cash disbursements amounted to $72,000. d. The company incurred development costs of $70,000 that met the criteria for capitalization for accounting purposes. Development work was still ongoing at year-end. These costs could be immediately deducted for tax purposes. e. The company made a political contribution of $23,000 and expensed this for accounting purposes. f. The income tax rate was 28% and the year 2 tax rate was enacted, at 30%. In second year, the company reported the following: a. Earnings before income tax were $1,630,000. b. Depreciation was $118,000: CCA was $290,000. C. The estimated warranty costs were $215,000, while the cash expenditure was $235,000. d. Additional development costs of $165,000 were incurred to complete the project. For accounting purposes, amortization of $41,000 was recorded. e. Golf club memberships for top executives cost $28,000; this was expensed for accounting purposes as a marketing expense. Required: 1. Prepare the journal entries to record income tax expense for the first and second years of operation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) hStep by Step Solution
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