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suppose a company buys a building for $1 million and uses straight-line depreciation for financial reporting purposes but accelerated depreciation for tax purposes. In the

suppose a company buys a building for $1 million and uses straight-line depreciation for financial reporting purposes but accelerated depreciation for tax purposes. In the first year, the company would record $100,000 in depreciation expense for financial reporting purposes but $200,000 for tax purposes, resulting in a temporary difference of $100,000. The company would record a deferred tax liability of $35,000 (assuming a tax rate of 35%) to account for the tax that will be due when the temporary difference reverses.

suppose a company sets aside a reserve of $50,000 for bad debts. The company would record an expense of $50,000 for financial reporting purposes, but the reserve would not be deductible for tax purposes until a bad debt actually occurs. As a result, the company would record a deferred tax liability to account for the tax that will be due when the reserve is eventually deducted for tax purposes.

Make these two examples into a journal entry please.

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