Information for Entity A for the year ended December 31, 2019 ($ in millions): Income...

Information for Entity A for the year ended December 31, 2019 ($ in millions):

Income from continuing operations before tax	$155
Temporary differences (all related to operating income):
Accrued warranty expense in excess of expense included in operating income	16
Depreciation deducted on tax return in excess of depreciation expense	32
Permanent differences (all related to operating income):
Entertainment expenses (none are deductible under 2017 Tax Act)	8
Interest received on municipal bonds	3
Balance in deferred tax asset account, January 1, 2019	1
Balance in deferred tax liability account, January 1, 2019	2
The applicable enacted tax rate for all periods is 25%.

Show work.

A. Prepare the appropriate journal entry to record income taxes. Show work where possible.

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ekkarill92 answered 10 months ago

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