Shetland Inc. had pretax financial income of $154,000 in 2012. Included in the computation of that amount
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Shetland Inc. had pretax financial income of $154,000 in 2012. Included in the computation of that amount is insurance expense of $4,000 which is not deductible for tax purposes. In addition, depreciation for tax purposes exceeds accounting depreciation by $10,000. Prepare Shetland’s journal entry to record 2012 taxes, assuming a tax rate of 45%.
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