Information from the Income Statement Columns of Leland Corporation's Worksheet

question 60

Essay

Information from the Income Statement columns of Leland Corporation's worksheet on December 31, 2013, is shown below. $\begin{array}{lr}\text { Sales } & \$ 460,000 \mathrm{Cr} \\\text { Purchases } & 310,000 \mathrm{Dr} \\\text { Selling Expense } & 70,000 \mathrm{Dr} \\\text { Income Tax Expense } & ?\\\text { General and Administrative Expense } & \$ 45,000 \mathrm{Dr} \text {. } \\\text { Amortization of Organization Costs } & 300 \mathrm{Dr} \text {. } \\\text { Income Summary } & 85,000 \mathrm{Dr} \\\text { Income Summary } & 105,000 \mathrm{Cr} \text {. }\end{array}$ 1. What is the amount of net income before income tax?
2. What is the amount of income tax on the net income? Use the tax rates set forth below.
3. What adjustment is recorded for Income Tax Expense? The corporation paid $8,400 through quarterly deposits.
4. What is the amount of net income after income tax? $$\begin{array} { l l } \text { Taxable Income } & \text { Tax Rate } \\\hline \text { First } \$ 50,000 & 15 \text { percent } \\\text { Next } \$ 25,000 & 25 \text { percent } \\\text { Next } \$ 25,000 & 34 \text { percent } \\\text { Next } \$ 235,000 & 39 \text { percent } \\\text { Over } \$ 335,000 & \text { See IRS publications }\end{array}$$

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the initial thoughts or feelings about someone or something formed quickly upon first encounter, often lasting and hard to change.

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