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The following information is for Hulk Gyms' first year of operations. Amounts are in millions of dollars. The enacted tax rate is 25%. Year Future
The following information is for Hulk Gyms' first year of operations. Amounts are in millions of dollars. The enacted tax rate is 25%.
| Year | Future Taxable Amounts | Future Amounts | |||||||||||||||||
| 2021 | 2022 | 2023 | 2024 | 2025 | Total | ||||||||||||||
| Accounting income | $ | 348 | |||||||||||||||||
| Temporary difference: | |||||||||||||||||||
| Prepaid insurance | (84 | ) | $ | 21 | $ | 21 | $ | 21 | $ | 21 | $ | 84 | |||||||
| Taxable income | $ | 264 | |||||||||||||||||
Required: Prepare a compound journal entry to record the income tax expense for the year 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
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