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Shannon Polymers uses straight - line depreciation for financial reporting purposes for equipment costing $ 7 0 0 , 0 0 0 and with an
Shannon Polymers uses straightline depreciation for financial reporting purposes for equipment costing $ and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is and in those years. Pretax accounting income the first year the equipment was used was $ which includes interest revenue of $ from municipal governmental bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is
Prepare the journal entry to record income taxes.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field.
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