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Cross Corporation provided the following reconciliation between taxable income and pretax GAAP income. Year 1 Year 2 Year 3 Year 4 Taxable income $ 4
Cross Corporation provided the following reconciliation between taxable income and pretax GAAP income.
Year Year Year Year
Taxable income $ $ $ $
Interest revenue on taxexempt municipal bonds
Depreciation expense
Bad debt expense
Pretax GAAP income $ $ $ $
Depreciation adjustment results from a difference between the GAAP basis and tax basis of depreciable equipment.
Bad debt expense adjustment results from a difference between the GAAP basis and tax basis of net accounts receivable.
Deferred tax accounts have a zero balance at the start of Year Tax rate is
Required
Journal Entries
Financial Statement Presentation
a Record the income tax journal entry on December of Year
b Record the income tax journal entry on December of Year
c Record the income tax journal entry on December of Year
d Record the income tax journal entry on December of Year
Note: If a line in a journal entry isn't required for the transaction, in the last line of the journal entry, select NA as the account name and leave the Dr and Cr answers blank zero
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