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Record the federal tax provision journal entry for the Thomas Corporation given the following facts. Thomas has GAAP pre-tax income of $500,000, non-deductible business meal
Record the federal tax provision journal entry for the Thomas Corporation given the following facts. Thomas has GAAP pre-tax income of $500,000, non-deductible business meal expenses of $50,000 (this is after the 50% limitation has been applied) $180,000 more tax depreciation expense than GAAP depreciation expense, and a 21% federal income tax rate. Be sure to show your work for partial credit. Debit income tax expense $94,500, credit current income tax payable $56,700, and credit deferred income tax liability $37.800. Debit income tax expense $115,500, credit current income tax payable $77,700, and credit deferred income tax liability $37.800 Debit income tax expense $105,000, credit current income tax payable $77.700, and credit deferred income tax liability $27,300. Debit income tax expense $115,500 and credit current income tax payable $115,500
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