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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
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). | ||||||
Trial Balance | Adjusting Entries | Adjusted TB | ||||
DR | CR | DR | CR | DR | CR | |
Marketable Securities | 5,500,000.00 | 265,000.00 | 5,235,000.00 | |||
Unrealized Gain/Loss | - | 265,000.00 | 265,000.00 | |||
Income Taxes Currently Payable | - | ? | ||||
Income Taxes | - | ? |
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