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Please show solutions. Please explain your answers. 2. In 2019, USA Corp. reported pretax book income of $1,000,000 in its first year of operations. Included
Please show solutions. Please explain your answers.
2. In 2019, USA Corp. reported pretax book income of $1,000,000 in its first year of operations. Included in pretax book income were taxable temporary differences of $300,000, deductible temporary differences of $80,000, and a permanent difference of $70,000 for municipal bond interest income received during the year. Refer to the example on page 5 of the packet that we reviewed in week 1's class, if needed. a) What is the amount of income tax expense reported on the 2019 income statement? b) What is the amount of the tax liability reported on the 2019 income tax return? c) What tax-related accounts are reported on the 2019 balance sheet? d) What is the journal entry to record the 2019 income tax provisionStep by Step Solution
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