Question
EZ, Incorporated, reports pretax accounting income of $436,000, but due to a single temporary difference, taxable income is $540,000. At the beginning of the year,
EZ, Incorporated, reports pretax accounting income of $436,000, but due to a single temporary difference, taxable income is $540,000. At the beginning of the year, no temporary differences existed. EZ is subject to a tax rate of 25%.
Required:
Prepare the appropriate journal entry to record EZ's income taxes.
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel
4th Canadian Edition
0470155353, 978-0470155356
