Question

» Assume that corporate income tax rates for 2017 are: 15% of the first $50,000 of income, plus 25% of the next $25,000, plus 34% of the next $25,000, plus 39% of the next $235,000. The remaining tax brackets are not listed because they aren’t applicable to Waren’s level of pre-tax income. General ledger account numbers for the journal entry are: #40700 (Federal income tax expense) and #20700 (Federal income taxes payable). What is the dollar amount of the year-end accrual for federal income taxes?  Create an Excel workhseet showing your calulation below.  

Answer 1

Calculation Of Federal income tax
15% of the first $50,000 of income	=50000*15%	7500
25% of the next $25,000	=25000*25%	6250
34% of the next $25,000	=25000*34%	8500
39% of the next $235,000	=235000*39%	91650
Total Federal Tax Payable		$113900
Description	GL A/c No.	Debit	Credit
Federal income tax expense	#40700	$113900
Federal income taxes payable	#20700		$113900
(To record Federal income tax Accrual for the year)
Note-
Best effort have been made to answer the question correctly, in case of any discrepencies kindly comment and i will try to resolve it as soon as possible.
Please provide positive feedback.