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A Company Facing a 45% Tax Rate Has Calculated Its

question 8

Essay

A company facing a 45% tax rate has calculated its taxable income for the year to be $2,100,000.It made installment payments during the year totalling $995,000; this amount has been recorded in an asset account as "income tax installments"
Requirement:
Prepare the journal entry to record the adjusting entry for income taxes at the end of the year under the taxes payable method.


Definitions:

Medical Supplies

Items used in the medical field for treatment, diagnosis, or preventive care, including bandages, syringes, and diagnostic kits.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity.

Client-Visits

The act of visiting clients either for business development, maintaining relationships, or providing support and services.

Administrative Expenses

Costs that are not directly tied to the production of goods or services, including salaries of office staff, utilities, and rent.

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