GENERAL ACCOUNT - 11 G Co. began its operations in January x1. At the end of the first year, G reported $340,000 income before taxes as financial income. However, they reported $320,000 as taxable income. The $20,000 difference is due to their use of the accrual method for certain sales for financial reporting purposes and the use of the installment sale method for those sales for tax purposes. The marginal tax rate is 34%. What is the amount of the income tax expense?

Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
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Subject = General Account

GENERAL ACCOUNT - 11
G Co. began its operations in January x1. At the end
of the first year, G reported $340,000 income before
taxes as financial income. However, they reported
$320,000 as taxable income. The $20,000 difference
is due to their use of the accrual method for certain
sales for financial reporting purposes and the use of
the installment sale method for those sales for tax
purposes. The marginal tax rate is 34%. What is the
amount of the income tax expense?
Transcribed Image Text:GENERAL ACCOUNT - 11 G Co. began its operations in January x1. At the end of the first year, G reported $340,000 income before taxes as financial income. However, they reported $320,000 as taxable income. The $20,000 difference is due to their use of the accrual method for certain sales for financial reporting purposes and the use of the installment sale method for those sales for tax purposes. The marginal tax rate is 34%. What is the amount of the income tax expense?
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