Sheridan Company made the following journal entry in late 2021 for rent on property it leases to Danford Corporation. Cash 155000 Unearned Rent Revenue 155000 The payment represents rent for the years 2022 and 2023, the period covered by the lease. Sheridan Company is a cash basis taxpayer. Sheridan has income tax payable of $235000 at the end of 2021, and its tax rate is 25%. Assuming the income taxes payable at the end of 2022 is $260000, what amount of income tax expense would Sheridan Company record for 2022?
Sheridan Company made the following journal entry in late 2021 for rent on property it leases to Danford Corporation. Cash 155000 Unearned Rent Revenue 155000 The payment represents rent for the years 2022 and 2023, the period covered by the lease. Sheridan Company is a cash basis taxpayer. Sheridan has income tax payable of $235000 at the end of 2021, and its tax rate is 25%. Assuming the income taxes payable at the end of 2022 is $260000, what amount of income tax expense would Sheridan Company record for 2022?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sheridan Company made the following
| Cash | 155000 | |
| Unearned Rent Revenue | 155000 |
The payment represents rent for the years 2022 and 2023, the period covered by the lease. Sheridan Company is a cash basis taxpayer. Sheridan has income tax payable of $235000 at the end of 2021, and its tax rate is 25%.
Assuming the income taxes payable at the end of 2022 is $260000, what amount of income tax expense would Sheridan Company record for 2022?
$298750
$240625
$215625
$279375
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