Home / Questions / Account for a corporation income tax 1) Taxable income is found on the: A) income
Account for a corporation's income tax
1) Taxable income is found on the:
A) income statement
B) balance sheet
C) tax return
D) retained earnings statement
2) Pretax accounting income is found on the:
A) income statement
B) balance sheet
C) tax return
D) retained earnings statement
3) When pretax accounting income exceeds taxable income:
A) Prepaid Income Tax is debited
B) Prepaid Income Tax is credited
C) Future Tax Liability is credited
D) Future Tax Asset is debited
4) When income tax payable exceeds income tax expense:
A) Accumulated Income Tax is debited
B) Prepaid Income Tax is credited
C) Future Tax Liability is credited
D) Future Tax Asset is debited
5) Income tax expense is based on ________ from the income statement while income tax payable is based on ________ from the income tax return.
A) net income, taxable income
B) taxable income, net income
C) pretax accounting income, taxable income
D) taxable income, pretax accounting income
6) Future tax liability is normally classified as a ________ and income tax payable is classified as a ________ on the balance sheet.
A) current liability; current liability
B) current liability; long-term liability
C) long-term liability; current liability
D) long-term liability; long-term liability
7) Challenger 605 Corporation, whose income tax rate is 35%, has pretax accounting income of $4,850,000 and taxable income of $4,075,000. The entry to record the income tax includes a:
A) debit to Future Tax Asset for $271,250
B) debit to Future Tax Asset for $775,000
C) credit to Future Tax Liability for $271,250
D) credit to Future Tax Liability for $775,000
8) Flexity Corporation, whose income tax rate is 35%, has taxable income of $592,600 and pretax accounting income of $494,000. The entry to record the income tax includes a:
A) debit to Income Tax Expense for $207,410
B) credit to Income Tax Payable for $207,410
C) credit to Income Tax Payable for $172,900
D) debit to Income Tax Payable for $172,900
9) Mitrac Corporation, whose income tax rate is 35%, has pretax accounting income of $636,000 and taxable income of $748,000. The entry to record the income tax includes a:
A) debit to Income Tax Expense for $261,800
B) credit to Income Tax Payable for $222,600
C) debit to Future Tax Asset for $39,200
D) credit to Future Tax Liability for $39,200
10) Mechatronic Bogie Ltd., whose income tax rate is 35%, has taxable income of $482,000 and pretax accounting income of $566,000. The entry to record the income tax includes a:
A) credit to Income Tax Expense for $198,100
B) credit to Income Tax Payable for $168,700
C) credit to Income Tax Payable for $198,100
Dec 09 2019 View more View Less
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