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Denver Co . reports pretax financial income of $ 9 5 , 0 0 0 for 2 0 x 1 . The following items cause
Denver Co reports pretax financial income of $ for x The following items cause taxable income to be different than pretax financial income:
Depreciation on the tax return is greater than depreciation on the income statement by $
Rent collected on the tax return is greater than rent earned on the income statement by $
Fines for pollution appear as an expense of $ on the income statement.
Bad debt expense of $ was recognized reported on x income statement The account will be written off tax deductible in x
Prepaid expenses deducted in the tax return, but not included in the income statement: $
Denvers tax rate is for all years and the company expects to report taxable income in all future years.
a Compute taxable income for x
b Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for x
c Compute net income for x
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