In its first year of operation, the book expenses and the expenses for the tax purpose are the same for the company. However, the book revenue is $50,000 and the taxable revenue is $40,000. The enacted income tax rate was 20%. We need to record:

In its first year of operation, the book expenses and the expenses for the tax purpose are the same for the company. However, the book revenue is $50,000 and the taxable revenue is $40,000. The enacted income tax rate was 20%. We need to record