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The following information pertains to PCX Company: Temporary differences for the year 2016 are summarized below. Expenses deducted in the tax return, but not included
The following information pertains to PCX Company:
Temporary differences for the year 2016 are summarized below.
Expenses deducted in the tax return, but not included in the income statement:
Depreciation: $60,000
Prepaid Expense: $8,000
Expenses reported in the income statement, but not deducted in the tax return:
Warranty Expense: $9,000
No temporary differences existed at the beginning of 2016.
Pretax accounting income was $67,000
The tax rate is 30%.
Required-
Prepare the journal entry to record the tax provision for 2016.
Account | Debit | Credit |
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