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Several years ago, Western Electric Corp. purchased equipment for $ 2 0 , 0 0 0 , 0 0 0 . Western uses straightline depreciation
Several years ago, Western Electric Corp. purchased equipment for $ Western uses straightline depreciation for financial reporting and accelerated depreciation for tax purposes. At December the carrying value of the equipment was $ and its tax basis was $ At December the carrying value of the equipment was $ and the tax basis was $ There were no other temporary differences and no permanent differences. Pretax accounting income for the current year was $ A tax rate of applies to all years.
Required: Prepare one journal entry to record Western's income tax expense for the current year.
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