Question
Gore Company, organized on January 2, 2018, had pretax accounting income of $8,000,000 and taxable income of $11,600,000 for the year ended December 31, 2018.
Gore Company, organized on January 2, 2018, had pretax accounting income of $8,000,000 and taxable income of $11,600,000 for the year ended December 31, 2018. The 2018 tax rate was 40%. The only difference between book and taxable income is estimated warranty costs. Expected payments and scheduled enacted tax rates are as follows:
2019$1,200,00035%2020600,00035%2021600,00035%20221,200,00030%
Required:
get readyone compound journal entry to record Gore's provision for taxes for the year 2018.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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