The pretax financial income of x Company differs from its taxable income throughout each of 4 years as follows. Year Pretax Financial Income Taxable Income Tax Rate 2020 $295,000 $180,000 35 % 2021 320,000 217,000 20 % 2022 335,000 264,000 20 % 2023 435,000 592,000 20 % Pretax financial income for each year includes a nondeductible expense of $29,300 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2020. Prepare the Income stmt for 2021 beginning with income before income taxes
The pretax financial income of x Company differs from its taxable income throughout each of 4 years as follows. Year Pretax Financial Income Taxable Income Tax Rate 2020 $295,000 $180,000 35 % 2021 320,000 217,000 20 % 2022 335,000 264,000 20 % 2023 435,000 592,000 20 % Pretax financial income for each year includes a nondeductible expense of $29,300 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2020. Prepare the Income stmt for 2021 beginning with income before income taxes
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The pretax financial income of x Company differs from its taxable income throughout each of 4 years as follows.
|
Year
|
Pretax
Financial Income |
Taxable Income
|
Tax Rate
|
||||
| 2020 | $295,000 | $180,000 | 35 | % | |||
| 2021 | 320,000 | 217,000 | 20 | % | |||
| 2022 | 335,000 | 264,000 | 20 | % | |||
| 2023 | 435,000 | 592,000 | 20 | % |
Pretax financial income for each year includes a nondeductible expense of $29,300 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one
Prepare the Income stmt for 2021 beginning with income before income taxes
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