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= Homework: Week Two Question 16, BE17-22 (similar to) > HW Score: 26.47%, 5.82 of 22 points Points: 0 of 1 Save Cooper Toy
= Homework: Week Two Question 16, BE17-22 (similar to) > HW Score: 26.47%, 5.82 of 22 points Points: 0 of 1 Save Cooper Toy Company uses an acceptable tax method that provided a $22,000 tax deduction for the current year. Book income and taxable income before considering this tax deduction are equal to $265,000 (i.e., there are no book-tax differences). Cooper is subject to a 35% income tax rate. Tax authorities have challenged this type of tax deduction in the past, and Cooper is now concerned about the realizability of this tax deduction in the future. However, management believes that it is more likely than not that the firm will sustain the tax benefits upon examination by tax authorities. Cooper provides the following analysis regarding the probabilities of sustaining the tax deduction: (Click the icon to view the analysis.) Prepare the journal entry required to record the tax provision for the current year assuming that Cooper is subject to a 35% tax rate. (Record debits first, then credits. Exclude explanations from any journal entries.) Account Current year Data table Amount Sustained Probability (%) $ 22,000 25 % 20,000 20 18,000 25 14,000 30 Print Done
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