Journal entry to record income tax expense

Assignment Help Financial Management
Reference no: EM13929762

The Matrix Company began operations as of the beginning of 2015. During 2015, Matrix reported GAAP (book) income before taxes of $789,500. For income tax purposes, depreciation expense was $150,000; for GAAP (book) purposes, depreciation expense was $74,000. Matrix accrued $900,000 of revenue for GAAP (book) purposes during 2015; $600,000 of the accrued revenue was taxable during 2015. Matrix earned interest of $79,800 from a municipal bond investment during 2015. Matrix’s marginal income tax rate is 40%. Matrix did not make any income tax payments during 2015. a. Determine Matrix’s taxable income for the year ended December 31, 2015. b. Prepare the 2015 year-end journal entry to record income tax expense.

Reference no: EM13929762

How much will you pay for the companys stock today

Caan Corporation will pay a $2.78 per share dividend next year. The company pledges to increase its dividend by 4.5 percent per year indefinitely. If you require a return of 1

Market value and the costs of specific sources of capital

The following data regarding the market value and the costs of specific sources of capital. Source of Capital After tax cost Long term debt 8% Common stock equity 19% Market p

Future values of single cash flows for different periods

Find the following values, using the equations, and then work the problems using a financial calculator to check your answers. Disregard rounding differences. An initial $400

If the market index increased

If the market index increased by 10.3% during a period,a stock with beta of 1.8 would be expected to ( increase or decrease) --------% during this same period ignore the risk

What is the implied yen dollor exchange rate at maturity?

A five-year, 4 percent Euro yen bond sells at par. A comparable risk five-year, 5.5 percent yen/dollar dual-currency bond pays $833.44 at maturity per¥100,000 of face value. I

Explain why the estimates from two valuation methods differ

You have been asked to perform a stock valuation prior to the annual shareholders meeting next week. The two models you’ve selected to value the firm are 1) the dividend disco

Considering test marketing for your new product

You are considering test marketing for your new product. There is a 30 percent chance that the results of the test marketing will be positive, in which case the expected NPV o

Weighted average cost-after-tax cost of debt for the firm

Your firm is considering a new investment proposal and would like to calculate the weighted average cost of capital. A bond that has a $1,000 par value (face value) and a cont


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd