S11-8 (Learning Objective 2: Accounting for a corporation’s income tax) Pensacola Marine, Inc.

S11-8 (Learning Objective 2: Accounting for a corporation’s income tax) Pensacola Marine, Inc., had income before income tax of $110,000 and taxable income of $90,000 for 20X8, the company’s first year of operations. The income tax rate is 40%. 1. Make the entry to record Pensacola Marine’s income taxes for 20X8. (pp. 593–594) 2. Show what Pensacola Marine will report on its 20X8 income statement starting with income before income tax. Also show what Pensacola Marine will report for current and long-term liabilities on its December 31, 20X8, balance sheet. (pp. 593–594)