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The following reconciliation was prepared by Hudson Co. at the end of 2023 to reconcile pretax financial income and taxable income: Pretax financial income Estimated
The following reconciliation was prepared by Hudson Co. at the end of 2023 to reconcile pretax financial income and taxable income: Pretax financial income Estimated warranty expenses deductible for taxes when paid Extra depreciation Taxable income $ 550,000 1,450,000 (1,800,000) $ 200,000 Estimated warranty expense of $825,000 will be deductible in 2024, $425,000 in 2025, and $200,000 in 2026. The use of the depreciable assets will result in taxable amounts of $600,000 in each of the next three years. Instructions (a) Prepare a table of future taxable and deductible amounts. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2023, assuming an income tax rate of 20% for all years
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