Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Southern Atlantic Distributors began operations in January 2021 and purchased a delivery truck for $40.000. Southern Atlantic plans to use straight-line depreciation over a four

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Southern Atlantic Distributors began operations in January 2021 and purchased a delivery truck for $40.000. 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 2021, 30% in 2022, and 20% in 2023 Pretax accounting income for 2021 was $540,000, which includes interest revenue of $72,000 from municipal governmental bonds. The enacted tax rate is 25% 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 2021. 2. What is Southern Atlantic's 2021 net income? Complete this question by entering your answers in the tabs below. Rodored 1 Calculation Required 1 Required 2 Complete the following table given below to record income taxes in 2021. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in whole dollars) Ter Race Tax Recorded as Pretax accounting income $ $40.000 Permanenterence 5 300 Income station $540,300 income taxe Temporary difference 5 200 Oferred to MacBook I D 888 4 08 3 # 3 $ 4 96 5 & 7 . 00 C 9 O- 6 2 U Y 1 T 0 U E 20 [ W S . H G J L F D M Z B MacBook * 888 DU BO F3 F2 DD 294 75 90 57 . # 3 $ 4 ? 0 > & 7 C 9 8 W E R T Y U S D F G H J K X V BN M Complete this question by entering your answers in the tabs below. Required 1 rdquired 1GD Required 2 Calculation Prepare the journal entry to record income taxes in 2021. (if no entry is required for a transaction/event, select "No jour required in the first account field. Enter your answers in whole dollars.) Credit Debit 65,000 1 View transaction list View journal entry worksheet No Transaction General Journal 1 Income tax expense Deferred tax liability Income tax payable MacBook go DO re V. 2015 30 F3 298 OOO 74 F? A $ % 5 & 7 # 3 8 6 9 O 4 0 U Y R T V H J L G S D F MacBook 00 D 28 F2 30 F3 ODO 888 FA 1 FS F2 & %23 $ N@ % 5 0) > 8 7 3 4 y

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Sustainability Of Public Sector EntitiesThe Relevance Of Accounting Frameworks

Authors: Josette Caruana, Isabel Brusca, Eugenio Caperchione, Sandra Cohen, Francesca Manes Rossi

1st Edition

3030060365, 9783030060367

More Books

Students also viewed these Accounting questions

Question

Describe the factors influencing of performance appraisal.

Answered: 1 week ago

Question

What is quality of work life ?

Answered: 1 week ago

Question

Does it highlight your accomplishments rather than your duties?

Answered: 1 week ago

Question

Does it clearly identify what you have done and accomplished?

Answered: 1 week ago

Question

Does it avoid using personal pronouns (such as I and me)?

Answered: 1 week ago