Explore BrainMass

Explore BrainMass

    Income Taxes Journal Entry

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    Solution Summary

    This solution shows step-by-step calculations to determine the taxable income, income tax expense, and income tax payable.