Question
Sorry, Here is the question: The Yeezy Company began operations in January 2017. After the first year of Operations, the following information was provided to
Sorry,
Here is the question:
The Yeezy Company began operations in January 2017. After the first year of Operations, the following information was provided to you for year ending December 31, 2017.
1. Pretax financial statement income is: $398,670.
2. Differences between financial statement income and tax return income were as follows:
a) Gross Profit reported on long-term projects was $65,000 on the financial statment, and $32,000 on the tax return.
b) Depreciation expense was $11,000 on the financial statement, and $19,500 on the tax return.
c) The company was fined $3,300 for OSHA violations on a housing project. The fine was reported as an expense in the financial statements, however, it is not deductible for tax purposes.
d) The Yeezy Company reported $1,500 of tax free interest revenue in the financial statement, it is not taxable on the tax return.
So I need answer for:
1. Prepare a schedule to reconcile financial statement income to tax return income?
2. Prepare all journal entries to account for taxes in 2017?
3. Prepare the income tax expense section of the income Statement starting with "income before Tax"?
4. Compute the "effective" tax rate for 2017?
5. Tax rate is 40%
Thank you!!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started