{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-29T15:01:57-04:00", "answer_date": "2024-05-29 15:01:57", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1890430", "url": "\/study-help\/questions\/yacht-inc-reports-66000-financial-income-for-2020-before-adjusting-1890430", "question_creation_date_js": "2024-05-29T15:01:57-04:00", "question_creation_date": "May 29, 2024 03:01 PM", "meta_title": "[Solved] Yacht Inc. reports $66,000 financial inco | SolutionInn", "meta_description": "Answer of - Yacht Inc. reports $66,000 financial income for 2020, before adjusting the following differences for tax reporting pur | SolutionInn", "meta_keywords": "yacht,inc,reports,$66,000,financial,income,2020,adjusting,differences,tax,reporting,purpose", "question_title_h1": " Yacht Inc. reports $66,000 financial income for 2020, before adjusting the following differences for tax reporting purpose. 1. $15,000 officers' life insurance premium expense", "question_title": " Yacht Inc. reports $66,000 financial income for 2020, before adjusting the", "question_title_for_js_snippet": "Yacht Inc reports $66,000 financial income for 2020, before adjusting the following differences for tax reporting purpose 1 $15,000 officers' life insurance premium expense is not deductible for tax purposes 2 Installment sales result in gross profit recognized for financial reporting purposes in excess of gross profit recognized for tax purposes by $8,000 3 Warranty expenses deducted for financial reporting exceeded warranty costs deducted for income taxes by $8,500 4 Legal expense of $6,200 was paid in full this year it will be split for this year and next year for financial reporting purpose The income tax rate is 21 for all years INSTRUCTIONS 1 Compute the Company's taxable income for the current year (show schedule) 2 Prepare the income tax journal entry of the Company for the current year 3 Prepare the income tax expense section of the income statement, beginning with Income before taxes ", "question_description": "\"image", "transcribed_text": "Yacht Inc. reports $66,000 financial income for 2020, before adjusting the following differences for tax reporting purpose. 1. $15,000 officers' life insurance premium expense is not deductible for tax purposes 2. Installment sales result in gross profit recognized for financial reporting purposes in excess of gross profit recognized for tax purposes by $8,000. 3. Warranty expenses deducted for financial reporting exceeded warranty costs deducted for income taxes by $8,500. 4. Legal expense of $6,200 was paid in full this year; it will be split for this year and next year for financial reporting purpose. The income tax rate is 21% for all years. INSTRUCTIONS: 1. Compute the Company's taxable income for the current year (show schedule). 2. Prepare the income tax journal entry of the Company for the current year. 3. Prepare the income tax expense section of the income statement, beginning with \"Income before taxes.\"", "related_book": { "title": "Financial Accounting", "isbn": "978-0071284714, 9780077300333, 71284710, 77300335, 978-0073526881", "edition": "6th Edition", "authors": "Libby, Short", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/143.jpg", "uri": "\/textbooks\/financial-accounting-6th-edition-143", "see_more_uri": "" }, "free_related_book": { "isbn": "1563632608", "uri": "\/textbooks\/pdr-nurses-handbook-1st-edition-978-1563632600-262592", "name": "Pdr Nurses Handbook", "edition": "1st Edition" }, "question_posted": "2024-05-29 15:01:57", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/econometrics\/use-the-data-in-exercise-1328to-familiarize-yourself-with-recursive", "description": "Use the data in Exercise 13.28.To familiarize yourself with recursive least squares, estimate the savings functions for 19701981, 19701985, 19701990, and 19701995. 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