PROBLEM $14-6$

Quarterly Income Tax Entries LO $9$

Actual quarterly earnings and quarterly estimates of annual earnings for Sloan Company for the year ended December $31,2019$ are as follows:

Quarter

Actual Quarterly Earnings

Quarterly Estimates of Annual Earnings

$1$

$$95,000$

$$400,000$

$2$

$85,000$

$370,000$

$3$

$92,000$

$370,000$

$4$

$96,000$

$$N$/$A

The combined state and federal tax rate for $2019$ is $30\%.$ Sloan Company estimated it would have permanent differences between accounting income and taxable income during $2019.$ Each quarter$$s estimate of these annual differences is provided in the following table:

Estimated Permanent Differences

Estimate at End of Quarter

Penalty for Pollution

Dividend Exclusion

$1$

$$14,000$

$$40,000$

$2$

$14,000$

$40,000$

$3$

$14,000$

$50,000$

The actual amount of permanent differences for $2019$ were environmental penalties, $$14,000$ dividend exclusion, $$55,000.$

Required:Prepare journal entries to record Sloan Company$$s $2019$ quarterly income tax provisions.