Unformatted text preview: 455,685 Income Tax Provision - State 189,000 Total Taxes 644,685 Net Income after Taxes 873,315 Note 1 -New this year was rent received from lease of land for a parking lot. The total amound was $35,000. The following is the breakdown: 2008 Rent(Received Jan-Dec 2008) 25,000 2009 Rent (Prepaid rent received in December of 2008) 5,000 Security Deposity 5,000 35,000 Note 2 - The reserve method was used for bad debts. The company specifically wrote - off $6,000 as uncollectible this year. Note 3 - Tax Depreciation for 2008 was $23,200 Note 4 - The office expense includes $8,500 of client entertainment expenses and $5,000 in country club dues. Note 5 - The legal fees consisted of $25,000 for 2008 billing from the legal office of Smith and Sony. The remaining amount is a reserve established for a legal dispute with a retiree over medical insurance premiums that the company stopped paying....
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- Spring '09
- Revenue, Expense, Generally Accepted Accounting Principles