Instructions Jefferson Corporation reported the following pretax and taxable income items from 2020: Expenses Gain from the disposal of the discontinued division Income from continuing operations Loss from discontinued division Revenues $65,800 8,000 59,200 (15,900) 125,000 Required: 1. Prepare the journal entries for 2020 to record the intraperiod income tax allocation. The tax rate for the first $30,000 of income is 15%; the tax rate thereafter is 35%. 2. Prepare the 2020 income statement for Jefferson Corporation
Instructions Jefferson Corporation reported the following pretax and taxable income items from 2020: Expenses Gain from the disposal of the discontinued division Income from continuing operations Loss from discontinued division Revenues $65,800 8,000 59,200 (15,900) 125,000 Required: 1. Prepare the journal entries for 2020 to record the intraperiod income tax allocation. The tax rate for the first $30,000 of income is 15%; the tax rate thereafter is 35%. 2. Prepare the 2020 income statement for Jefferson Corporation
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 18E
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