In November and December 2020, Waterway Industries, a newly organized magazine publisher, received $78600 for 1,000 three-year subscriptions at $23 per year, starting with the January 2021 issue. Waterway included the entire $78600 in its 2020 income tax return. What amount should Waterway report in its 2020 income statement for subscriptions revenue? $0. $78600. $4366. $26200.

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A: Deferred Subscription revenue is recorded on a company's balance sheet as a liability. It is treated…

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A: a. Compute income taxes payable.

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A: SOlution: Deferred income tax liability = Future taxable amount * Tax rate of 2022

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A: The journal entries are prepared to keep the record of day to day transactions of the business.

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A: Journal entries refers to the systematic documentation of the financial transactions of the company…

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A: Pretax financial income- It is that income of the entity which it earns after deducting all the…

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A: Journal: Recording of a business transactions in a chronological order.

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A: Income tax expense = Income before income tax expense x tax rate = $237000 x 35% = $82,950

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A: The question is based on the concept of Business transaction anaysis.

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A:

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.