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In: Accounting

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 1 year ago
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