Tazmania Inc. had pretax financial income of $154,000 in 2007. Included in the computation of that amount is insurance expense of $4,000 which is not deductible for tax purposes. In addition, depreciation for tax purposes exceeds accounting depreciation by $14,000. Prepare Tazmania's journal entry to record 2007 taxes, assuming a tax rate of 45%.© BrainMass Inc. brainmass.com October 9, 2019, 11:14 pm ad1c9bdddf
This solution shows step-by-step calculations to determine the taxable income, income tax expense, and income tax payable.