Shannon Polymers uses straight$-$line depreciation for financial reporting purposes for equipment costing $$700,000$ and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is $40\%,30\%,20\%,$ and $10\%$ in those years. Pretax accounting income the first year the equipment was used was $$800,000,$ which includes interest revenue of $$21,000$ from municipal governmental bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is $25\%.$

Prepare the journal entry to record income taxes.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

$***$ Just answer please$***$Shannon Polymers uses straight$-$line depreciation for financial reporting purposes for equipment costing $$700,000$ and

with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is $40\%,30\%,$

$20\%,$ and $10\%$ in those years. Pretax accounting income the first year the equipment was used was $$800,000,$ which

includes interest revenue of $$21,000$ from municipal governmental bonds. Other than the two described, there are no

differences between accounting income and taxable income. The enacted tax rate is $25\%.$

Prepare the journal entry to record income taxes.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Record the income tax expense.

Note: Enter debits before credits.