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The following data represent the differences between accounting and tax income for Minh Inc., whose pre-tax accounting income is $600,000 for the year ended Decembe
The following data represent the differences between accounting and tax income for Minh Inc., whose pre-tax accounting income is $600,000 for the year ended Decembe tax rate is 45%. Additional information relevant to income taxes includes the following. a. Capital cost allowance of $270,000 exceeded accounting depreciation expense of $120,000 in the current year. b. Rents of $20,000, applicable to next year, had been collected in December and deferred for financial statement purposes but are taxable in the year received c. In a previous year, the company established a provision for product warranty expense. A summary of the current year's transactions appears below ii. Warranty Expense for the year iii. Payments made to fulfill product warranties 42,500 35,000 d. Insurance expense to cover the company's executive officers was $5,500 for the year. Required: 1. Calculate Taxable Income 2. Prepare all journal entries to record income taxes for Minh Inc. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt X x TT ABC EMEMALIX609 95 FB B F9 27 & Esc ! 1 F1 AI @ F2 +4 F3 X F4 F5 F6 F7 # $ % 2 3 4 5 66 Q W E R T Y Tab S D D 8 *CO DIR F10 811 61 9 O FIZ Pr 156 P LL F H G H J KL N M
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