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Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $740.000 and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is 40%, 30%, 20%, and 10% In those years. Pretax accounting Income the first year the equipment was used was $840,000, which includes Interest revenue of $23.000 from municipal governmental bonds. Other than the two described, there are no differences between accounting Income and taxable income. The enacted tax rate is 25%. Prepare the journal entry to record Income taxes. (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 tax expense. Note: Enter debits before credits General Journal Debit Credit Transaction 1 Record entry Clear entry View general Journal Shannon Polymers uses straight-line depreciation for financial reporting purposes for equipment costing $740,000 and with an expected useful life of four years and no residual value. Assume that, for tax purposes, the deduction is 40%, 30%, 20%, and 10% in those years. Pretax accounting income the first year the equipment was used was $840,000, which includes interest revenue of $23.000 from municipal governmental bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 25%. Prepare the journal entry to record income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct. No Transaction General Journal Credit Debit 215,350 X 1 1 Income tax expense Income tax payable Deferred tax liability 176,500 38,850