Tax information and implications

? $1,500 in meal and entertainment expenses show as a permanent difference for tax. Prepare the necessary adjusting entry.

? The company uses straight line depreciation for book and MACRS depreciation for the tax return

? MACRS depreciation was $209,301 higher than book. Prepare the adjusting entry for the deferred tax.

? There have been recent tax structure changes the could impact the company. Peyton Approved has been a C Corp since the beginning of these changes. Peyton provides for taxes at 25% of pretax income (20% Federal, 5% state).