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Novak Inc. had accounting income of $153,400 in 2023 . Included in the calculation of that amount is the CEO's life insurance expense of $4,200,
Novak Inc. had accounting income of $153,400 in 2023 . Included in the calculation of that amount is the CEO's life insurance expense of $4,200, which is not deductible for tax purposes. In addition, the UCC for tax purposes is $13,800 lower than the net carrying amount of the property, plant, and equipment, although the amounts were equal at the beginning of the year. Prepare Novak's journal entry to record 2023 income tax. Assume that Novak has a tax rate of 25% and that Novak uses the taxes payable method of accounting for income taxes under ASPE. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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