Amazon.com, Inc. reported the following for the fiscal year 2023:
•Pretax financial income: $3,000,000
•Taxable income: $2,500,000
•Temporary differences: $200,000 (more deductible for tax purposes next year)
•Permanent differences: $300,000
The corporate tax rate is 25%.
Required:
1.Calculate the current tax expense.
2.Determine the deferred tax asset or liability.
3.Prepare the journal entry to record the income tax provision for 2023.