Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / A company reports 2021 pretax accounting income of $46 million, but because of a single temporary difference, taxable income is only $25 million
A company reports 2021 pretax accounting income of $46 million, but because of a single temporary difference, taxable income is only $25 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%.
Prepare the appropriate journal entry to record income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal place (i.e., 5,500,000 should be entered as 5.50).)
Journal Entry Worksheet
Please record the income tax
| Journal Entry: | ||
| General Journal | Debit | Credit |
| Income Tax Expense | 11.5 | |
| Deferred Tax Liability ($46-$25)*25% | 5.25 | |
| Income Tax Payable ($25*25%) | 6.25 |
