Southern Atlantic Distributors began operations In January 2018 and purchased a delvery truck for $120,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2018, 30% in 2019, and 20% in 2020, Pretax accounting income for 2018 was $540,000, which includes interest revenue of $70,000 from municipal bonds. The enacted tax rate is 40%. Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table given below and prepare the journal entry to record income taxes In 2018. 2. What is Southern Atlantic's 2018 net income? Complete this question by entering your answers in the tabs below. Required 1Required 1 G) Required 2 Calculation Complete the following table given below to record income taxes in 2018. (Enter your answers in thous deducted should be indicated with a minus sign,) Tax Rato % .. Tax $ Recorded as: 1 . Pretax accounting income $ 540 540 x Income subject to taxation Temporary difference Income taxable in current year S 540x Required 1 oJ) Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Prepare the journal entry to record income taxes in 2018. (If no entry is required for a transacti required" in the first account field. Enter your answers in thousands.) View transaction list Journal entry worksheet Record 2018 income taxes. Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry vlow general journal Required 2 > Southern Atlantic Distributors began operations in January 2018 and purchased a delvery t for $120,000. Southern Atlantic plans to use straight-ine depreciation over a four-year expe useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 30% in 2019, and 20% in 2020, Pretax accounting income for 2018 was $540,000, which inc interest revenue of $70,000 from municipal bonds. The enacted tax rate is 40%. Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table given below and prepare the journal entry to record income in 2018. 2. What is Southern Atlantic's 2018 net income? Complete this question by entering your answers in the tabs below. Caicuilation Required 1 G1 Required 2 What is Southern Atlantic's 2018 net income? (Enter your answer in thousands.) red 1 Calculation C Required 1 QJ
