the current year, Madison Corporation had $50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a warranty liability for financial reporting purposes of $5,000 at the end the year. Warranty expenses are not deductible until paid for income tax purposes.

In the current year, Madison Corporation had $50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a warranty liability for financial reporting purposes of $5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes Required: Prepare the journal entry to record Madison's income taxes at the end of the year. Prepare the journal entry to record Madison's income taxes on December 31. How does grading work? PAGE 1 GENERAL JOURNAL Score: 24/37 DEBIT CREDIT DATE Dec. 31' Income Tax Expense 11,010,000.00 Deferred Tax Asset Income Taxes Payable 10,000.00 11,000,000.00