accounting

Southern Atlantic Distributors began operations in January 2016 and purchased a delivery truck for $120,000. Southern Atlantic plans to use straight- line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2016, 30% in 2017, and 20% in 2018. Pretax accounting income for 2016 was $520,000, which includes interest revenue of $60,000 from municipal bonds. The enacted tax rate is 40%. Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table given below and prepare the journal entry to record income taxes in 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) Tax Rate Tax Recorded % $ as: Pretax accounting income $520 Permanent difference Income subject to taxation X Temporary difference View transaction list Journal entry worksheet