Problem 13-2 Calculating the amount of temporary and permanent
differences and tax entry (LO 13-2, LO 13-4, LO 13-8)
The following information pertains to Ramesh Company for the
current year:
Book income before
income taxes
$
106,000
Income tax expense
45,500
Income taxes due for this
year
28,000
Statutory income tax rate
35
%
The company has one permanent difference and one temporary
difference between book and taxable income.
Required:
Calculate the amount of temporary difference for the year and...