Saunders Inc., reported pretax accounting income of $100,000 during the current year, which included $10,000 interest from investments in municipal bonds. The enacted tax rate is 25%.

Prepare the appropriate journal entry to record the company’s income taxes for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Debit: Tax Expense $25,000

Credit: Income Tax Payable $22,500

Credit: Deferred Tax Liability $2,500

Explanation:

Pretax accounting income $100,000

Less: Interest from investments in municipal bonds -$10,000

Taxable Income $90,000

Tax As per Accounts ($100,000 x 25%) $25,000

Taxes Paid ($90,000 x 25%) 22,500

Difference $2,500

Saunders Inc.

Current Year

Debit: Tax Expense $25,000

Credit: Income Tax Payable $22,500

Credit: Deferred Tax Liability $2,500

To Record Income Tax Payable.

x=3

step-by-step explanation:

this is really simple i saw that there was only one term (5x) and thought if that was 15 what would i have to multiply everything else to get it there? well if 5x became 15 then x would have to be 3 so plug the 3 in the x for the other equations and you get 15 for the other ones. so there you go. : )

answer; dividing net income by 1- t ;