Question
The accounting (not income tax) records of Mahoney Publications provide the income statement for the year...
The
accounting (not income tax) records of Mahoney Publications provide
the income statement for the year ended Dec 31,2016
Income statement:
Total revenue $920,000
Expenses
COGS $430,000
Operating expenses $280,000
Total expenses before tax $710,000
Pretax accounting income $210,000
Taxable income for 2016
A) additional taxable income of 14,000 earned in 2017 but
taxed in 2016
B) additional depreciation expense of 20,000 for MACRS tax
depreciation in 2016
The income tax rate is 35%
Requirements:
1. Compute Mahoneys taxable income for 2016
2. Journaize the corporations income taxes for 2016
3. Prepare the corporations single step income statement for
2016
Homework Answers
Answer #1
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