The accounting records of Sandhill Inc. show the following data for 2020 (its first year of operations).1.Life insurance expense on officers was $9,000.Equipment was acquired in early January for $321,000. Straight-line depreciation over a 5-year life is used, with no salvagevalue. For tax purposes, Sandhill used a 30% rate to calculate depreciation.2.3.Interest revenue on State of New York bonds totaled $3,800.Product warranties were estimated to be $51,600 in 2020. Actual repair and labor costs related to the warranties in 2020were $10,100. The remainder is estimated to be paid evenly in 2021 and 2022.4.5.Gross profit on an accrual basis was $93,000. For tax purposes, $79,000 was recorded on the installment-sales method.6.Fines incurred for pollution violations were $4,400.7.Pretax financial income was $817,800. The tax rate is 30%.Prepare a schedule starting with pretax financial income in 2020 and ending with taxable income in 2020.Cak. Schedule of Pretax Financial Incomeand Taxable Income for 2020Pretax financial incomePermanent differencesTemporary differencesTaxable income%24>>>>>>

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Description: The accounting records of Sandhill Inc. show the following data for 2020 (its first year of operations).1.Life insurance expense on officers was $9,000.Equipment was acquired in early January for $321,000. Straight-line depreciation over a 5-year li

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The accounting records of Sandhill Inc. show the following data for 2020 (its frst year of operation: 1. Life insurance expense on officers was $9,000. Equipment was acquired in early January for $321,000. Straight-line depreciation over a 5- value. For tax purposes, Sandhill used a 30% rate to calculate depreciation. 2. 3. Interest revenue on State of New York bonds totaled $3,800. Product warranties were estimated to be $51,600 in 2020. Actual repair and labor costs re were $10,100. The remainder is estimated to be paid evenly in 2021 and 2022. 4. 5. Gross profit on an accrual basis was $93,000. For tax purposes, $79,000 was recorded on th 6. Fines incurred for pollution violations were $4,400. 7. Pretax financial income was $817,800. The tax rate is 30%.

The accounting records of Sandhill Inc. show the following data for 2020 (its frst year of operation: 1. Life insurance expense on officers was $9,000. Equipment was acquired in early January for $321,000. Straight-line depreciation over a 5- value. For tax purposes, Sandhill used a 30% rate to calculate depreciation. 2. 3. Interest revenue on State of New York bonds totaled $3,800. Product warranties were estimated to be $51,600 in 2020. Actual repair and labor costs re were $10,100. The remainder is estimated to be paid evenly in 2021 and 2022. 4. 5. Gross profit on an accrual basis was $93,000. For tax purposes, $79,000 was recorded on th 6. Fines incurred for pollution violations were $4,400. 7. Pretax financial income was $817,800. The tax rate is 30%.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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