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Please help Davis Zarek Apparel Incorporated reported pre-tax book income of $835,000 for the current year. The change in the difference in the basis of
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Davis Zarek Apparel Incorporated reported pre-tax book income of $835,000 for the current year. The change in the difference in the basis of plant assets is $180,000, and the book basis is higher than the tax basis. Davis invested in tax-free bonds and earned $68,000 in nontaxable interest income (included in the $835,000 pre-tax income). Prepare the journal entry required to record he tax expense for the current year assuming a 40% income tax rate. Record de s s the credits. Exclude explanation or any ouma entries. Account Income Tax Expense Deferred Tax Liability Income Taxes Payable Current YearStep by Step Solution
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