Haskell,Inc In 2009,Haskell Deducted a $35,000 Item for Income Tax Purposes

question 100

Essay

Haskell,Inc.,reported the following income before income taxes,income taxes expense,and net income for 2009 and 2010:
$\begin{array}{lrr}&2009&2010\\\text { Income before income taxes } & \$ 420,000 & \$ 420,000 \\\text { Income taxes expense } & \underline{240,000}& \underline{240,000} \\\text { Net income } & \underline{\$ 180,000 }& \underline{\$ 180,000}\end{array}$
In 2009,Haskell deducted a $35,000 item for income tax purposes that was not deducted for accounting purposes until 2010.Haskell's marginal tax rate is 40 percent.Prepare entries in journal form without explanations to record Haskell's income taxes expense and income taxes payable for each year,assuming that income tax allocation procedures are used properly.

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Definitions:

Great League Of Peace

An alliance of the Iroquois tribes, originally formed sometime between 1450 and 1600, that used their combined strength to pressure Europeans to work with them in the fur trade and to wage war across what is today eastern North America.

Iroquois

A historically powerful and influential group of Native American tribes in the northeastern United States, known for their sophisticated political system and the Iroquois Confederacy.

Centralized Authority

A system where decision-making and power are concentrated in a central group or location.