Question

The Seminole corporation has income before tax of $150,000.00 and taxable income of $65,000.00. The income tax rate is 35 percent. The journal entry includes a debit to income tax expense for what amount?

Answer 1

Answer:

$29,750

Step-by-step explanation:

We have been given the income before tax: $150,000

And taxable income: $65,000

So, the income tax would be : $150,000-$65,000=$85000

So, 35% of $85000 is $85000\cdot \frac{35}{100}$

On simplification we get:  $29,750

Hence, the income tax expense will be $29,750

Answer 2

Financial Operations of Corporations

1. $17,000.00

2. $52,500.00

3. return on equity ratio

4. $2.37

5. no journal entry is required

6. $1,000.00

7. depreciation

8. retained earnings

9. $25,000.00

10. income tax payable