Question
The following information is for James Industries' first year of operations. Amounts are in millions of dollars. Year Future Taxable Amounts Future Amounts 2020 2021
The following information is for James Industries' first year of operations. Amounts are in millions of dollars.
| Year | Future Taxable Amounts | Future Amounts | ||||||||||||||||
| 2020 | 2021 | 2022 | 2023 | 2024 | Total | |||||||||||||
| Accounting income | $ | 220 | ||||||||||||||||
| Temporary difference: | ||||||||||||||||||
| Advance rent payment | (76 | ) | $ | 19.00 | $ | 19.00 | $ | 19.00 | $ | 19.00 | $ | 76.00 | ||||||
| Taxable income | $ | 144 | ||||||||||||||||
In 2021 the company's pretax accounting income was $115.0. The enacted tax rate for 2020 and 2021 is 25%, and it is 30% for years after 2021.
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 millions, (for example, 10 rather than 10,000,000.)
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Comparative international accounting
Authors: Christopher nobes, Robert parker
9th Edition
273703579, 978-0273703570
