On the Worksheet for the Current Year Ended Dec 31,column

question 45

Essay

On the worksheet for the current year ended Dec 31,column totals in the Income Statement section are debit,$220,000 and credit $285,000.Assuming income and deductions for tax purposes are the same as those for financial reporting and the company has paid estimated taxes of $15,000 to date.Tax rates remain 15% for the first $50,000;25% on the next 25,000;34% on the next $25,000 and 39% on the excess over $100,000.Prepare the adjusting entry for income taxes.

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Definitions:

Dependent Variable

The outcome factor in a study that changes in response to manipulations of the independent variable.

Nonexperimental Method

A research strategy that involves observing and collecting data without manipulating the environmental conditions or variables.

Cause And Effect

A relationship in which one event (the cause) leads to the occurrence of another event (the effect).

Confounding

Confounding occurs when an outside influence affects both the dependent and independent variables in an experiment, potentially leading to false assumptions about the relationship between them.