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help asp The information that follows pertains to James Inc. (a) Temporary differences for the year 2018 are summarized below: Expenses deducted in the tax
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The information that follows pertains to James Inc. (a) Temporary differences for the year 2018 are summarized below: Expenses deducted in the tax return, but not included in the income statement: Depreciation $70,000 Prepaid expense 9,000 Expenses reported in the income statement, but not deducted in the tax return: Warranty expense 8,000 (b) No temporary differences existed at the beginning of 2018 (c) Pretax accounting income was $68,000 and taxable income was $8,000 for 2018. (d) There were no permanent differences. (e) The tax rate is 30% Required: Prepare the journal entry to record the tax provision for 2018. Provide your computations to earn credit Step by Step Solution
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