Question 4 of 4 View Policies < > Current Attempt in Progress The accounting records of Sage Inc. show the following data for 2025 (its first year of operations). 1. Life insurance expense on officers was $9,400. 2. -/1 Equipment was acquired in early January for $275,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Sage used a 30% rate to calculate depreciation. 3. Interest revenue on State of New York bonds totaled $3,800. 4. 5. 6. 7. Product warranties were estimated to be $52,500 in 2025. Actual repair and labor costs related to the warranties in 2025 were $9,700. The remainder is estimated to be paid evenly in 2026 and 2027. Gross profit on an accrual basis was $96,000. For tax purposes, $72,100 was recorded on the installment-sales method. Fines incurred for pollution violations were $4,200. Pretax financial income was $739,000. The tax rate is 30%. (a) Prepare a schedule starting with pretax financial income in 2025 and ending with taxable income in 2025. Schedule of Pretax Financial Income and Taxable Income for 2025 Question 4 of 4 Prepare a schedule starting with pretax financial income in 2025 and ending with Schedule of Pretax Financial Income and Taxable Income for 2025 Pretax financial income $ Permanent differences Temporary differences +A $ +A $ Taxable income $ eTextbook and Media List of Accounts รวมด
Question 4 of 4 View Policies < > Current Attempt in Progress The accounting records of Sage Inc. show the following data for 2025 (its first year of operations). 1. Life insurance expense on officers was $9,400. 2. -/1 Equipment was acquired in early January for $275,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Sage used a 30% rate to calculate depreciation. 3. Interest revenue on State of New York bonds totaled $3,800. 4. 5. 6. 7. Product warranties were estimated to be $52,500 in 2025. Actual repair and labor costs related to the warranties in 2025 were $9,700. The remainder is estimated to be paid evenly in 2026 and 2027. Gross profit on an accrual basis was $96,000. For tax purposes, $72,100 was recorded on the installment-sales method. Fines incurred for pollution violations were $4,200. Pretax financial income was $739,000. The tax rate is 30%. (a) Prepare a schedule starting with pretax financial income in 2025 and ending with taxable income in 2025. Schedule of Pretax Financial Income and Taxable Income for 2025 Question 4 of 4 Prepare a schedule starting with pretax financial income in 2025 and ending with Schedule of Pretax Financial Income and Taxable Income for 2025 Pretax financial income $ Permanent differences Temporary differences +A $ +A $ Taxable income $ eTextbook and Media List of Accounts รวมด
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 12E: Temporary and Permanent Differences Lin has just completed its first year of operations and has a...
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Transcribed Image Text:Question 4 of 4
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<
>
Current Attempt in Progress
The accounting records of Sage Inc. show the following data for 2025 (its first year of operations).
1.
Life insurance expense on officers was $9,400.
2.
-/1
Equipment was acquired in early January for $275,000. Straight-line depreciation over a 5-year life is used, with no salvage
value. For tax purposes, Sage used a 30% rate to calculate depreciation.
3.
Interest revenue on State of New York bonds totaled $3,800.
4.
5.
6.
7.
Product warranties were estimated to be $52,500 in 2025. Actual repair and labor costs related to the warranties in 2025
were $9,700. The remainder is estimated to be paid evenly in 2026 and 2027.
Gross profit on an accrual basis was $96,000. For tax purposes, $72,100 was recorded on the installment-sales method.
Fines incurred for pollution violations were $4,200.
Pretax financial income was $739,000. The tax rate is 30%.
(a)
Prepare a schedule starting with pretax financial income in 2025 and ending with taxable income in 2025.
Schedule of Pretax Financial Income
and Taxable Income for 2025
Transcribed Image Text:Question 4 of 4
Prepare a schedule starting with pretax financial income in 2025 and ending with
Schedule of Pretax Financial Income
and Taxable Income for 2025
Pretax financial income
$
Permanent differences
Temporary differences
+A
$
+A
$
Taxable income
$
eTextbook and Media
List of Accounts
รวมด
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