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.

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Definitions:

NFC (Near Field Communication)

A set of communication protocols that enable two electronic devices, one of which is usually a portable device such as a smartphone, to establish communication by bringing them within close proximity.

VR (Virtual Reality)

A simulated experience that can be similar to or completely different from the real world, often using specialized equipment like headsets for immersive interaction.

Cruising Experience

The overall enjoyment and satisfaction a person gains from traveling on a cruise ship, which may include amenities, destinations, and onboard activities.

Customer Power

The influence that customers have over a business or market, often demonstrated through their ability to drive trends, decide the success of products or services, and command attention to their needs and preferences.