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Unformatted text preview: 102,000 4. The effective income tax rate is: $240,000/$775,000 = 30.97% 1 Section 3 Spring 11 Homework Quiz —14 Name Section ABC Company’s pretax accounting income is $775,000 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 $500,000 and is $205,000 in the calculation of pretax accounting income. b. Rent revenue on the tax return is $120,000 and is $80,000 in the calculation of pretax accounting income. c. Municipal bond interest revenue in the calculation of pretax accounting income is $95,000. 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...
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This note was uploaded on 03/03/2012 for the course MGMT 351 taught by Professor Staff during the Spring '08 term at Purdue.
- Spring '08