Joy Corporation: Tax payable and tax provision amounts
Not what you're looking for?
Joy Corporation prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2005:
Book income before income taxes $750,000
Add temporary difference:
Construction contract revenue that will reverse in 2006 100,000
Deduct temporary difference:
Depreciation expense that will reverse in equal amounts in each of the next four years (400,000)
Taxable income $450,000
Joy's income tax rate is 35% for 2005.
Required:
1. What amount should Joy report in its 2005 income statement as the current provision for income taxes?
2. How much should Joy report as deferred income taxes on the income statement in 2005?
Purchase this Solution
Solution Summary
Computations shown step by step.
Solution Preview
1. What amount should Joy report in its 2005 income statement as the current provision for income ...
Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Operations Management
This quiz tests a student's knowledge about Operations Management
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.