hw 9 solution problem.doc - For the year ended Joey Co...

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For the year ended December 31, 2017, Joey Co. reported pretax accounting income of $977,000. Selected information for 2017 from Joey Co.’s records follows: Interest Income on Municipal Bonds $32,000 Depreciation claimed on the 2017 tax return in excess of depreciation on the income statement $55,000 Warranty Expense reported on the Income Statement $26,000 Actual Warranty expenditures in 2017 $16,000 Joey Co.’s income tax rate is 35%. At January 1, 2017, Joey Co.’s records indicated balances of zero and $12,000 in its deferred tax asset and deferred tax liability accounts, respectively. Required: 1) Determine the amounts necessary to record income taxes in 2017 and prepare the appropriate journal entry. 2).What is Joey’s 2017 Net Income? [Show your answer by preparing the Income tax
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