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Boston reported a pretax operating loss of $25,000 for book purposes and a $30,000 loss for tax. The difference in book and tax income is
Boston reported a pretax operating loss of $25,000 for book purposes and a $30,000 loss for tax. The difference in book and tax income is attributable to a single temporary difference, which arose in the current period. There were no other temporary differences in any other year. The tax rate is 21% for all years.
A) Prepare a journal entry to record the tax provision for the year.
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