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Assume that Shoreline Hotel Inc., (SHI) decides to make the following entry on December 31, 2018. Current tax rate is 40%.        DR Current income tax expense                   $634,800        CR        Income tax payable                                                     $634,800  This would imply that    Select one: a. the taxable income for 2018 was different than the accounting income. b. the income tax expense reported by SHI on its income statement would be $750,000. c. the taxable income for 2018 was determined to be $1,587,000. d. All of the above. e. None of the above.

Assume that Shoreline Hotel Inc., (SHI) decides to make the following entry on December 31, 2018. Current tax rate is 40%.        DR Current income tax expense                   $634,800        CR        Income tax payable                                                     $634,800  This would imply that    Select one: a. the taxable income for 2018 was different than the accounting income. b. the income tax expense reported by SHI on its income statement would be $750,000. c. the taxable income for 2018 was determined to be $1,587,000. d. All of the above. e. None of the above.

FINANCIAL ACCOUNTING
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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 Assume that Shoreline Hotel Inc., (SHI) decides to make the following entry on December 31, 2018. Current tax rate is 40%.

       DR Current income tax expense                   $634,800

       CR        Income tax payable                                                     $634,800 

This would imply that 

 

Select one:
a.
the taxable income for 2018 was different than the accounting income.
b.
the income tax expense reported by SHI on its income statement would be $750,000.
c.
the taxable income for 2018 was determined to be $1,587,000.
d.
All of the above.
e.
None of the above.
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