The following information pertain to United Corp. for the year ending December 31, 2019:

Financial income ..................................................................................................... $2,000,000

Tax rate ...................................................................................................................... 30%

On January 1 st 2019, United purchased 40% of the voting common stock of Reed, Inc.

During 2019, Reed reported earnings of $360,000 and paid dividends of $120,000. United

assumes that all of Reed's undistributed earnings will be distributed as dividends in future

periods.

On January 1 st , 2019 United issued a 3-year, 10%, $100,000 face value bonds that pay interest on

January and July in each of the three years. The market rate on January 1 st , 2019 is 9%. United

uses the effective interest rate method and the straight line method of amortization for

financial and tax purposes, respectively.

For the year ending 12/31/2019, United has the following information related to its Qualified

pension plan:

a) Contributions .............................................................................................................. $10,000

b) Gains on investment ................................................................................................. 4,000

journal entry on 12/31/2019 to record income tax expense for 2019 (do not forget to show

work and circle your JE)