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Problem 2 (7 points) For 2018, its first year of operations, HD Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax
Problem 2 (7 points) For 2018, its first year of operations, HD Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 300,000 Temporary difference-Estimated Warranty Expense 20,000 Taxable income HD's tax rate is 40%. HD determined th 320,000 at it was more likely than not that 30% of the deferred tax asset ultimately would not be realized. Prepare a journal entry (entries) to record the company's tax provision for the year 2018. (5 points) a. Debit Credit Account Description Workings: What is the net income on the income statement for the year ended December 31, 2018? (2 points) b
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