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Home Q & A Board Other Fields Homework Help Business Accounting
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2yankees2 2yankees2
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5 years ago
Gustav, Inc. uses the accrual basis to account for all sales transactions. Sales for 2015 total $500,000. Included in this amount is $75,000 in receivables from sales on installment. Installment sales are considered revenue for book purposes, but not for tax purposes. Operating expenses total $150,000 and are treated the same for book and tax purposes.

Complete the following:
a. What is the book basis of the installment sales receivable?
b. What is the tax basis of the installment sales receivable?
c. Assuming a 30% tax rate, compute income tax expense, the deferred tax provision, and income tax payable for 2015.
d. Prepare the journal entry to record the 2015 income tax expense.
Textbook 
Intermediate Accounting

Intermediate Accounting


Edition: 1st
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dridri
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2yankees2 Author
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5 years ago
Genius!!!!!!
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