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Temporary differences for the year 2021 are summarized below. Expenses deducted in the tax return, but not included in the income statement: Depreciation Prepaid expense
Temporary differences for the year 2021 are summarized below. Expenses deducted in the tax return, but not included in the income statement: Depreciation Prepaid expense $58,000 $ 7,800 Expenses reported in the income statement, but not deducted in the tax return: Warranty expense $8,800 (b.) No temporary differences existed at the beginning of 2021. (c.) Pretax accounting income was $64,800 and taxable income was $7,800 for 2021. (d.) There were no permanent differences. (e.) The tax rate is 40%. Required: Prepare the journal entry to record the tax provision for 2021. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list Journal entry worksheet 1 > Record the income taxes. Note: Enter debits before credits. Transaction General Journal Debit Credit 1
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