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Allmond Corporation, organized on January 3, 2018, had pretax accounting income of $34 million and taxable...

Allmond Corporation, organized on January 3, 2018, had pretax accounting income of $34 million and taxable income of $44 million for the year ended December 31, 2018. The 2018 tax rate is 35%. The only difference between accounting income and taxable income is estimated product warranty costs. Expected payments and scheduled tax rates (based on recent tax legislation) are as follows: 2019 $ 4 million 30 % 2020 2 million 30 % 2021 2 million 30 % 2022 2 million 25 %

Required: 1. Determine the amounts necessary to record Allmond’s income taxes for 2018 and prepare the appropriate journal entry. 2. What is Allmond’s 2018 net income?

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ekkarill92 answered 2 years ago
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