ACC/423 (ACC423)INTERMEDIATE FINANCIAL ACCOUNTING IIIUniversity of Phoenix (UoP)

Wednesday July 13, 2022

ACC/423 (ACC423)INTERMEDIATE FINANCIAL ACCOUNTING IIIUniversity of
Phoenix (UoP)Kieso D. E. Weygandt J. J. & Warfield T. D.
(2007).Intermediate Accounting (12th ed.) (13th
Ed.)Hoboken NJ: John Wiley & Sons.Week Four (Week 4)
Chapter 19Problem 19-2 (P19-2) (One Temporary Difference Tracked for 4
Years One Permanent Difference Change in Rate) The pretax financial income of
Parker-Gregory Company differs from its taxable income throughout each of 4
years as follows.Pretax TaxableYear Financial Income Income Tax
Rate2007 $280000 $180000 35%2008 320000 225000 40%2009 350000
270000 40%2010 420000 580000 40%Pretax financial income for each
year includes a nondeductible expense of $30000 (never deductible for tax
purposes). The remainder of the difference between pretax financial income and
taxable income in each period is due to one depreciation temporary difference.
No deferred income taxes existed at the beginning of
2007.Instructions(a) Prepare journal entries to record income taxes
in all 4 years. Assume that the change in the tax rate to 40% was not enacted
until the beginning of 2008.(b) Prepare the income statement for 2008
beginning with income before income taxes


Get a custom answer for this and any question related to academic

Order Now
Order a Custom Paper
By placing an order, you agree to our terms & conditions