Brief Exerclse $16-10($Algo$)$ Calculate taxable Income $[$L$016-2,16-5]$

Shannon Polymers uses straight$-$Iine depreclation for financlal reporting purposes for equipment costing $$840,000$ and with an

expected useful life of four years and no residual value. Assume that, 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 $$960,000,$ which Includes Interest revenue of

$$28,000$ from municipal governmental bonds. Other than the two described, there are no differences between accounting income and

taxable income. The enacted tax rate is $25\%.$

Prepare the journal entry to record income taxes.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Record the income tax expense.

Nate: Enter debits before credits.