The following is selected information from the accounting records of Slow Inc. for 20X9 its first year
Question:
The following is selected information from the accounting records of Slow Inc. for 20X9 its first year of operations:
Earnings before income taxes$620,000
In determining pre-tax accounting earnings, the following deductions were made:
a.Golf club dues19,000b.Accrued warranty costs53,000c.Depreciation69,000
For tax purposes, the following deductions were made:
a.Warranty costs incurred39,000b.CCA138,000
The capital assets, originally costing $690,000, are depreciated on a straight-line basis over 10 years, zero residual value, with a full year of depreciation taken in Year 1. The tax rate is 36%.
Required:
Prepare the journal entry to record income tax at the end of 20X9.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)