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Below are the options for journal entries. Crandall Corp. was formed in 20X1. The company uses the comprehensive tax allocation method. Relevant information pertaining to
Below are the options for journal entries.
Crandall Corp. was formed in 20X1. The company uses the comprehensive tax allocation method. Relevant information pertaining to \\( 20 \\times 1,20 \\times 2 \\), and \\( 20 \\times 3 \\) is as follows: *Pension amounts are tax deductible when paid, not when expensed. Over the long term, payments will equal total expense. The tax basis for the pension will always be zero. For accounting purposes, there will be a statement of financial position asset account asset called \"deferred pension cost\" for the difference between the amount paid and the expense, since the amount paid is higher. Required: Prepare the journal entry to record income tax expense for each year. (If no entry is required for a transaction/event, select \"No journal entry required\" in the first account field.) No Journal Entry Required Deferred income tax Income tax expense Income tax payable Retained earningsStep by Step Solution
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