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    Income Taxes Journal Entry

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    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
    https://brainmass.com/business/journal-entries/income-taxes-journal-entry-249885

    Solution Summary

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

    $2.19