Bgan inc reports bad debt expense using the allowance

Assignment Help Accounting Basics

Reference no: EM13593056

Brogan, Inc., reports bad debt expense using the allowance method. For tax purposes the direct write-off method is used. At the end of the current year, Brogan has accounts receivable and an allowance for uncollectible accounts of $4,000,000 and $300,000, respectively, and taxable income of $22,000,000. At the end of the previous year, Pocus reported a deferred tax asset of $90,000 related to the difference in reporting bad debts, its only temporary difference. The enacted tax rate is 35% each year.

Prepare the appropriate journal entry for Brogan to record the income tax provision for the current year. Show well-labeled supporting computations.

Reference no: EM13593056

Questions Cloud

Interstellar space has a magnetic field on the order of 01 : question interstellar space has a magnetic field on the order of 0.1 nt. matter in this space is mainly hydrogen atoms

Bravo baking uses standard costing to analyze its : bravo baking uses standard costing to analyze its performance. the data below is provided for your use in determining

The concrete sections of a certain superhighway are : question the concrete sections of a certain superhighway are designed to have a length of 23.0m. the sections are

The polar ice caps contain about 23 1019 kg of ice this : question the polar ice caps contain about 2.3 1019 kg of ice. this mass contributes essentially nothing to the earths

Bgan inc reports bad debt expense using the allowance : brogan inc. reports bad debt expense using the allowance method. for tax purposes the direct write-off method is

Prepare journal entries to record tashas income tax expense : at the end of the prior year tasha inc. had a deferred tax asset of 21000000 attributable to its only timing

Gas is confined in a tank at a pressure of98atm and a : question gas is confined in a tank at a pressure of9.8atm and a temperature of26.5degc. if two-thirds of the gas is

A space probe with a rest mass of 82107kg and a speed of : a space probe with a rest mass of 8.2107kg and a speed of 0.5c smashes into an asteroid at rest and becomes embedded

A company purchased the following securities in feb : a company purchased the following securities in feb 2012.prior to these purchases the company had investment security

User Account

All Pages