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3-44 (LO. 5) GinnyCo has pretax book and taxable income of $400,000 and reports a $100,000 income tax payable in the current year. GinnyCo has
3-44 (LO. 5) GinnyCo has pretax book and taxable income of $400,000 and reports a $100,000 income tax payable in the current year. GinnyCo has engaged in activities that it believes qualify for the research activities credit a general business tax credit of $40,000 that it cannot use this year, and its management believes that it is more likely than not that one-fourth of the credit carryforward will expire unused. a. Compute GinnyCo's income tax provision for the year, expressed as a Microsoft Excel formula. b. Construct the journal entry to report these items. JOURNAL DATE Description Post. Ref. Debit Credit
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