Question
Big box uses straight line depreciation on all fixed assets for financial reporting purposes, but accelerated methods for the tax return. Also during the company
Big box uses straight line depreciation on all fixed assets for financial reporting purposes, but accelerated methods for the tax return. Also during the company paid life insurance premiums on policies covering all its top executives. Big Box is the beneficiary of the life policies. During the summer, Big Box paid a fine for a labor law violation. For accruing income taxes the following summary: Net income per books 600,000 GAAP depreciation 20,000 Tax depreciation 100,000 Life insurance expense 14,000 Fines & penalties expense 10,000 Using a 21% tax rate, give the journal entry to accrue income taxes
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