spur company s actual earnings for the first two quarters of 2008 and its estimate d 4374392

Spur Company’s actual earnings for the first two quarters of 2008 and its estimate during each quarter of its annual earnings are:Actual first-quarter earnings………… $ 400,000Actual second-quarter earnings………… 510,000First-quarter estimate of annual earnings…… 1,350,000Second-quarter estimate of annual earnings…… 1,420,000Spur Company estimated its permanent differences between accounting income and taxable income for 2008 as:Environmental violation penalties……… $ 25,000Dividend income exclusion………… 180,000These estimates did not change during the second quarter. The combined state and federal tax rate for Spur Company for 2008 is 42%.Required:Prepare journal entries to record Spur Company’s provisions for income taxes for each of the first two quarters of 2008.View Solution:
Spur Company s actual earnings for the first two quarters of

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