Brief Exercise 16-9 Calculate taxable income [LO16-1, 16-4]

Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $520,000 and with an expected useful life of 4 years and no residual value. For tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax accounting income the first year the equipment was used was $620,000, which includes interest revenue of $11,000 from municipal bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 30%. Prepare the journal entry to record income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)