Brief Exercise 16-9 Calculate taxable income [LO16-1, 16-4] Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $720,000 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 $820,000, which includes interest revenue of $22,000 from municipal bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 40 % Prepare the journal entry to record income taxes. (If no entry is required for a transection/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the income tax expense. Note: Enter debits before credits