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The following date represents the differences between accounting and tax income for seafood imports inc. whose pretax accounting income is 700000 for the year ended
The following date represents the differences between accounting and tax income for seafood imports inc. whose pretax accounting income is 700000 for the year ended December 31. The companys income tax rate is 45%. Additional information relevant to income taxes includes the following:
- Capital cost allowance of 270000 exceeded accounting depreciation expenses of 145000 in the current year.
- Rents of 30000 applicable to next year had been collected in December and deferred for financial statement purposes but are taxable in the year received.
- In a previous year, the company established a provision for product warranty expense , a summary of the current years transactions appears below:
- Warranty expenses for the year 42500
- Payments made to fulfill product warranties 35000
- Insurance expense to cover the companys executive officers was 6,860 for the year.
Required:
Prepare all the journal entries to record income taxes for seafood imports.
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