Chapter 19, Problem 21E

To determine

Income Tax: An amount payable to the government for the income earned during the specific period of time after deducting the permissible deductions is termed as income tax.

Taxable income: Income that is computed after deducting all allowable or permissible deductions from the pretax financial income is called taxable income. In other words, the income that is eligible for computing the tax liability is taxable income.

To determine and record the journal entry for the years 2014–2018.