This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: 8,000 4. The effective income tax rate is: $216,000/$600,000 = 36.0% 1 Section 1 Spring 11 Homework Quiz —14 Name Section ABC Company’s pretax accounting income is $600,000 and its tax rate is 40%. The following items cause taxable income to be different from pretax accounting income: a. Depreciation expense on the tax return is $150,000 and is $105,000 in the calculation of pretax accounting income. b. Rent revenue on the tax return is $90,000 and is $65,000 in the calculation of pretax accounting income. c. Municipal bond interest revenue in the calculation of pretax accounting income is $60,000. Municipal bond interest revenue is not taxable. Required : 1. Taxable income is: 2. Income tax payable is: 3. The journal entry to record income tax expense, deferred income taxes, and income taxes payable is: Debit Credit 4. The effective income tax rate is: 2...
View Full Document
- Spring '08
- Progressive Tax, Taxation in the United States, Generally Accepted Accounting Principles