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Problem (10 points). Aristotle Corporation reported the following taxable and pretax accounting incomes. $ Taxable income Pretax accounting income 20X2 6,000,000 $ 7,000,000 20X3 7,000,000$

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Problem (10 points). Aristotle Corporation reported the following taxable and pretax accounting incomes. $ Taxable income Pretax accounting income 20X2 6,000,000 $ 7,000,000 20X3 7,000,000$ 6,600,000 20X4 8,000,000 7,400,000 All differences are attributable to the same type of temporary difference, and the company began 20x2 without any deferred tax accounts. The tax rate for each year is 30%. Assume that no valuation allowance account is necessary, if applicable. REQUIRED: (1) For each year, determine the following amounts. (a) Current taxes payable. (b) Year end deferred tax balance, with an indication of whether it is an asset or liability. (c) Change in deferred taxes for the year. (d) Income tax expense. For each year, prepare the adjusting journal entry(ies), in proper general journal form, required to record income taxes. (2)

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