During your audit of Nue & Olde LLP for its first year of operations, you discover the following end-of-year adjusting entry in the partnership’s general journal:

Instructions Is the recognition of income taxes expense in the foregoing journal entry in accordance with generally accepted accounting principles? Explain, including in your explanation the accepted definitions of expense and income taxes expense.

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2005 Dec. 31 Partners' Income Taxes Expense Partners' Income Taxes Payable To provide for income taxes payable on Nue's and Olde's individual income tax returns based on their shares of partnership income for 2005. 40,000 40,000