The Banin Company was established in 2010 . During this year it purchased one asset with five years of useful life . The asset is depreciated based on a straight - line method for financial reporting , and based on an unspecified , accelerated method for tax reporting . In 201 , the Banin Company was fined $20 060 for unsportsmanlike conduct . The fine is not deductible for tax purposes . There were no other differences between financial and tax reporting over the years Required 8 . Assume the pretax financial income ( based on GAAP ) in 2010 was SL60 0DO , the taxable income for 2010 ( based on the tax code ) was $190 090 and the tax rate was 3096 . Provide the journal entry to record the income tax expense for 2010