First $50000 @15%
Next 25000 @25%
Remainder @34% Income between $100000 and $335000 is assessed a 5% federal surtax not to exceed $11750. Hint: Corporations subject to federal income tax must make estimated tax payments throughout the year. At the time of the payment the account Income Tax Expense
is debited and Cash is credited. To determine the taxable income at year end net the total debits and total credits from the income statement in the worksheet.
Note that the estimated income tax expense is listed as a debit and must be subtracted from total debits when determining taxable income (federal tax is not a
deductible item). Prepare the journal entry for income taxes
SB: The pretax income is $254608 and the estimated income tax expense throughout the year is $72000.
After my calculation I got $74817 for the federal income tax and $11457 for the state income tax.
My only problem is how to figure the amount I have to journalize for income taxes:
Dr Income tax expense ?
Cr Income taxes payable ?