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Rice, Inc. began operations on January 1, 2016. Depreciation temporary differences were the only differences between pretax financial income (loss) and taxable income (loss)
Rice, Inc. began operations on January 1, 2016. Depreciation temporary differences were the only differences between pretax financial income (loss) and taxable income (loss) in any year. The income tax rate was 35% in each year and no changes in income tax rates were expected. Pretax financial income (loss) and the temporary differences due to depreciation were as follows: Pretax Financial Excess Tax Year Income (Loss) Depreciation 2016. $1,000 $ 600 2017 3,000 2,600 2018 3,000 2,600 2019 (5,000) 800 2020 3,000 1,000 2021 6,000 800 Required: Prepare the income tax journal entry for Rice, Inc. for December 31, 2019; assuming no valuation allowance is required for Rice's deferred tax assets.
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