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Paul’s Roofing Corporation paid monthly corporate income tax instalments of $500 commencing February 15, 2016. The company’s income before income taxes for the year ended December 31, 2016 was $15,000. The corporate income tax rate is 40%. Paul’s Roofing paid the 2016 corporate income taxes owing on January 31, 2017.
Required:
- Record the February 15, 2016 payment.
- Record the 2016 corporate income tax expense.
- Record the January 31, 2017 payment.
Descriptions and general ledger account numbers are not necessary. Show calculations where applicable.
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