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In: Accounting

2. Munoz Corp.'s books showed pretax financial income of $3,600,000 for the year ended December 31,...

2. Munoz Corp.'s books showed pretax financial income of $3,600,000 for the
year ended December 31, 2021. In the computation of federal income taxes, the
following data were considered:
Gain on an involuntary conversion $1,560,000
(Munoz has elected to replace the property within the statutory
period using total proceeds.)
Depreciation deducted for tax purposes in excess of depreciation
deducted for book purposes 240,000
Federal estimated tax payments, 2021 200,000
Enacted federal tax rate, 2021 20%

Question.)Prepare the accounting entry for taxes on Munoz Corp’s Books for
2021.

3.. Haag Corp.'s 2021 income statement showed pretax accounting income of
$2,500,000. To compute the federal income tax liability, the following 2021 data
are provided:
Income from exempt municipal bonds $ 100,000
Depreciation deducted for tax purposes in excess of depreciation
deducted for financial statement purposes 200,000
Estimated federal income tax payments made 330,000
Enacted corporate income tax rate 20%

Question.)Prepare the accounting entry on Haag Corp’s books for 2021

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Expert Solution

ekkarill92 answered 2 years ago
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