Cullumber Company reports pretax financial income of $64,000 for 2025. The following items cause taxable income to be different (c) Prepare the income tax expense section of the income statement for 2025, beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) CULLUMBER COMPANY Income Statement (Partial) SS = than pretax financial income. Depreciation on the tax return is greater than depreciation on the income statement by $14,700. Rent collected on the tax return is greater than rent recognized on the income statement by $22, 100. Fines for pollution appear as an expense of $10,000 on the income statement. Cullumber's tax rate is 40% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2025. (a) Your answer is correct. Compute taxable income and income taxes payable for 2025. Taxable income Income taxes payable (c) Prepare the income tax expense section of the income statement for 2025, beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Income before Income Taxes Income Tax Expense Deferred CULLUMBER COMPANY Income Statement (Partial) For the Year Ended December 31, 2025 64000 Current Net Income/(Loss) 32560 $
Cullumber Company reports pretax financial income of $64,000 for 2025. The following items cause taxable income to be different (c) Prepare the income tax expense section of the income statement for 2025, beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) CULLUMBER COMPANY Income Statement (Partial) SS = than pretax financial income. Depreciation on the tax return is greater than depreciation on the income statement by $14,700. Rent collected on the tax return is greater than rent recognized on the income statement by $22, 100. Fines for pollution appear as an expense of $10,000 on the income statement. Cullumber's tax rate is 40% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2025. (a) Your answer is correct. Compute taxable income and income taxes payable for 2025. Taxable income Income taxes payable (c) Prepare the income tax expense section of the income statement for 2025, beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) Income before Income Taxes Income Tax Expense Deferred CULLUMBER COMPANY Income Statement (Partial) For the Year Ended December 31, 2025 64000 Current Net Income/(Loss) 32560 $
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 14P
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please answer with must and compulsory explanation, computation , for each steps and all parts answer in text form
Transcribed Image Text:Cullumber Company reports pretax financial income of $64,000 for 2025. The
following items cause taxable income to be different (c) Prepare the income tax
expense section of the income statement for 2025, beginning with the line
"Income before income taxes." (Enter negative amounts using either a negative
sign preceding the number e.g. -45 or parentheses e.g. (45).) CULLUMBER
COMPANY Income Statement (Partial) $$ = than pretax financial income.
Depreciation on the tax return is greater than depreciation on the income
statement by $14,700. Rent collected on the tax return is greater than rent
recognized on the income statement by $22, 100. Fines for pollution appear as
an expense of $10,000 on the income statement. Cullumber's tax rate is 40%
for all years, and the company expects to report taxable income in all future
years. There are no deferred taxes at the beginning of 2025. (a) ✓ Your answer
is correct. Compute taxable income and income taxes payable for 2025.
Taxable income Income taxes payable
(c)
Prepare the income tax expense section of the income statement for 2025, beginning with the line "Income before income taxes."
(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Income before Income Taxes
Income Tax Expense
Deferred
CULLUMBER COMPANY
Income Statement (Partial)
For the Year Ended December 31, 2025
64000
Current
Net Income/(Loss)
32560
$
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