1. Prepare a simple tax provision and the journal entries to calculate the current and the deferred tax provision (benefit) using the following data: a. ABC, Inc. reported pre-tax book income of $1,000,000 for 2021. b. Included in the pre-tax book income were meals of $100,000 of which 50% are disallowed under US tax rules. c. Book depreciation included in pre-tax income was $100,000 and under tax rules, tax depreciation is $150,000. d. Assume a tax rate of 21%.
Chpt 6: Tax Provision HW Prepare a simple tax provision and the journal entries to calculate the current and the deferred tax provision (benefit) using the following data: ABC, Inc. reported pre-tax book income of $1,000,000 for 2021. Included in the pre-tax book income were meals of $100,000 of which 50% are disallowed under … Read more