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Problem 5 CIA, Inc., reports pretax accounting income of $400,000, but due to a single temporary difference, taxable income is $500,000. At the beginning of
Problem 5 |
CIA, Inc., reports pretax accounting income of $400,000, but due to a single temporary difference, taxable income is $500,000. At the beginning of the year, no temporary differences existed. CIA is subject to a tax rate of 40%. Required: Prepare the appropriate journal entry to record CIA's income taxes. Show well-labeled computations. |
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