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The information that follows pertains to Esther Food Products: a. At December 31, 2021, temporary differences were associated with the following future taxable (deductible)
The information that follows pertains to Esther Food Products: a. At December 31, 2021, temporary differences were associated with the following future taxable (deductible) amounts: Depreciation Prepaid expenses Warranty expenses b. No temporary differences existed at the beginning of 2021. $60,000 17,000 (12,000) c. Pretax accounting income was $80,000 and taxable income was $15,000 for the year ended December 31, 2021. d. The tax rate is 25%. Required: Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry.
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