Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2024 through 2027 except for differences in depreciation on an operational asset. The asset cost $120,000 and is depreciated for income tax purposes in the following amounts: 20241 2025 2026 2027 $ 39,600 52,800 18,000. 9,600 The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes. Income amounts before depreciation expense and income taxes for each of the four years were as follows: Accounting income before taxes and depreciation 2024 2025 $ 60,000 $ 80,000 2026 2027 $ 70,000 $ 70,000 Assume the income tax rate for 2024 and 2025 was 30%; however, during 2025, tax legislation was passed to raise the tax rate to 40% beginning in 2026. The 40% rate remained in effect through the years 2026 and 2027 Both the accounting and income tax periods end December 31. Required: Prepare the journal entries to record income taxes for the years 2024 through 2027 Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list
Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years 2024 through 2027 except for differences in depreciation on an operational asset. The asset cost $120,000 and is depreciated for income tax purposes in the following amounts: 20241 2025 2026 2027 $ 39,600 52,800 18,000. 9,600 The operational asset has a four-year life and no residual value. The straight-line method is used for financial reporting purposes. Income amounts before depreciation expense and income taxes for each of the four years were as follows: Accounting income before taxes and depreciation 2024 2025 $ 60,000 $ 80,000 2026 2027 $ 70,000 $ 70,000 Assume the income tax rate for 2024 and 2025 was 30%; however, during 2025, tax legislation was passed to raise the tax rate to 40% beginning in 2026. The 40% rate remained in effect through the years 2026 and 2027 Both the accounting and income tax periods end December 31. Required: Prepare the journal entries to record income taxes for the years 2024 through 2027 Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list
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 5MC: At the beginning of 2019, Conley Company purchased an asset at a cost of 10,000. For financial...
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