The income tax rate is 30% on current and is payable in the first quarter of 2014. The pretax income before the preceding adjusting entries is $6,800.

The accounts are;
Income tax expense
Income tax payable.
I do not understand this question and what it is asking for. Can you help me?

Of course, my friend! Let me break it down for you with a touch of humor.

Basically, we have a situation where the income tax rate is 30%, which means that 30% of the pretax income will need to be paid as income tax. In this case, the pretax income before any adjustments is $6,800.

Now, the question is asking you to determine how much income tax expense and income tax payable should be recorded based on this information.

Think of it like this: income tax expense is the amount of income tax that we recognize as an expense on our financial statements, while income tax payable is the amount that we owe to the tax authorities.

So, in this case, you'll need to calculate 30% of the $6,800 pretax income to figure out the income tax expense. And since the tax is payable in the first quarter of 2014, that's when income tax payable will become due.

Now, let's get those calculators out and crunch some numbers!

Certainly! Based on the information provided, the question is asking you to determine the amount of income tax expense and income tax payable for the first quarter of 2014, given a pretax income of $6,800 and an income tax rate of 30%.

To calculate the income tax expense, you need to apply the income tax rate to the pretax income. The formula is:

Income Tax Expense = Pretax Income * Tax Rate

In this case, the pretax income is $6,800 and the tax rate is 30% (0.30):

Income Tax Expense = $6,800 * 0.30
= $2,040

Therefore, the income tax expense for the first quarter of 2014 is $2,040.

Next, to calculate the income tax payable, you need to determine the amount of income tax that is owed and payable for the specified period. Since the payment is due in the first quarter of 2014, the entire income tax expense is payable. Therefore:

Income Tax Payable = Income Tax Expense
= $2,040

Therefore, the income tax payable for the first quarter of 2014 is $2,040.

Certainly! This question is asking you to calculate the amount of income tax expense and income tax payable based on the given information. Let's break it down step by step:

Step 1: Identify the pretax income before adjusting entries. According to the question, the pretax income before adjusting entries is $6,800.

Step 2: Calculate the income tax expense. The income tax rate is given as 30%. To calculate the income tax expense, you need to multiply the pretax income by the tax rate. In this case, the calculation would be:
Income tax expense = Pretax income * Tax rate
Income tax expense = $6,800 * 30% (or 0.30)
Income tax expense = $2,040

Step 3: Determine the income tax payable. The income tax is payable in the first quarter of 2014, which means it needs to be paid within that period. So the income tax payable is the same as the income tax expense. In this case, the income tax payable would also be $2,040.

Step 4: Record the transactions in the appropriate accounts. The income tax expense is an expense account, so you would increase it by $2,040. The income tax payable is a liability account, so you would also increase it by $2,040.

I hope this helps clarify the question and how to approach it! Let me know if you have any further questions.

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