4) Kraft Company made the following journal entry in late 2025 for rent received on property it leases to Danford Corporation: Cash Unearned Rent Revenue 150,000 150,000 The payment represents rent for the years 2026 and 2027, the period covered by the lease. Kraft is a cash basis taxpayer. Kraft has income tax payable of $230,000 at the end of 2025, and its tax rate is 25%. Assuming that income taxes payable at the end of 2026 is $255,000, what amount of income tax expense would Kraft record for 2026? 4) A) $273,750 B) $236,250 C) $292,500 D) $217,500

4) Kraft Company made the following journal entry in late 2025 for rent received on property it leases to Danford Corporation: Cash Unearned Rent Revenue 150,000 150,000 The payment represents rent for the years 2026 and 2027, the period covered by the lease. Kraft is a cash basis taxpayer. Kraft has income tax payable of $230,000 at the end of 2025, and its tax rate is 25%. Assuming that income taxes payable at the end of 2026 is $255,000, what amount of income tax expense would Kraft record for 2026? 4) A) $273,750 B) $236,250 C) $292,500 D) $217,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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