A Company's Income Statement Reported Net Income of $80,000 During

question 110

Essay

A company's income statement reported net income of $80,000 during 2016. The income tax return excluded a revenue item of $10,000 (reported on the income statement) because under the tax laws the $10,000 would not be reported for tax purposes until 2017.
Required:
Prepare the journal entry to record the 2016 income tax expense assuming a 40% tax rate.

---

Definitions:

5-Year-Olds

Refers to children typically in the early childhood developmental stage, characterized by rapid growth in language, cognitive abilities, and social skills.

Language Acquired

Refers to the process by which humans learn to understand and communicate through language, typically occurring in childhood.

Generate

To bring into existence; to produce or create something, especially by a process of thought or imagination.

Sequence

An ordered list or arrangement where items are consecutively positioned based on certain criteria.