Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Southern Atlantic Distributors began operations in January 2024 and purchased a delivery truck for $40,000. Southern Attantic plans to use straight-line depreciation over a four-year

image text in transcribed
image text in transcribed
image text in transcribed
Southern Atlantic Distributors began operations in January 2024 and purchased a delivery truck for $40,000. Southern Attantic 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 2024,30% in 2025, and 20% in 2026. Pretax accounting income for 2024 was $300,000, which includes interest revenue of $40,000 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 and prepare the journal entry to record income taxes in 2024. 2. What is Southern Atlantic's 2024 net income? Complete this question by entering your answers in the tabs below. Complete the following table to record income taxes in 2024. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in whole dollars. Prepare the joumal entry to record income taxes in 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer whole doilars: Journal entry worksheet Southern Atlantic Distributors began operations in January 2024 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 2024,30% in 2025, and 20% in 2026 . Pretax accounting income for 2024 was $300,000, which includes interest revenue of $40,000 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 and prepare the journal entry to record income taxes in 2024. 2. What is Southern Atlantic's 2024 net income? Complete this question by entering your answers in the tabs below. What is Southem Atlantic's 2024 net income? Note: Enter your answer in whole dollars

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_2

Step: 3

blur-text-image_3

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

Advances In Quantitative Analysis Of Finance And Accounting (Vol. 4)

Authors: Lee Cheng Few

2nd Edition

9812700218, 9789812700216

More Books

Students also viewed these Accounting questions

Question

=+what you can edit out yet still get the message across.

Answered: 1 week ago

Question

=+3. How could you extend the campaign creatively?

Answered: 1 week ago