The Tax Preparation Blog

Posts Tagged ‘cfa’

Question: What is income Tax expense a percetage of?

I have an adjusting journal entry that says Income Tax Expense is .32 with no extraordinary or unusual items to consider in this calculation. What is this a percentage of? What is the calculation?
I have the entry as a debt to Income Tax Expense and a Credit to Income Tax Payable.

Answer: Income Tax Expense is a percentage of Net Income. Your entry is correct. So you have to calculate Net Income Before Income Tax, skip a line, put Income Tax and the formula of .32*the cell with NIBIT, then total it and call it Net Income After Income Tax.

Exchange Income Corporation Announces August 2010 Dividend

Exchange Income Corporation , announced today that the Directors of the Corporation have declared eligible dividends totaling $0.13 per share for the month ended August 31, 2010, payable September 15, 2010 to shareholders of record at the close of business on August 31, 2010.

IRS Commissioner Dodges Income Tax Question – No Law!