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During its first year of operations ending on December 3 1 , 2 0 1 6 , the Dakota Company reported pretax accounting income of

During its first year of operations ending on December 31,2016, the Dakota Company reported pretax accounting income of $600,000. The only difference between taxable income and accounting income was $80,000 of accrued warranty costs. Tax rate for 2016 is 30% but will change to 35% in 2017. Prepare the income tax entry for 2016.

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