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The information that follows pertains to Esther Food Products: On December 31, 2016, temporary differences were associated with the following future taxable (deductible) amounts: |Depreciation
The information that follows pertains to Esther Food Products:
- On December 31, 2016, temporary differences were associated with the following future taxable (deductible) amounts:
|Depreciation |$60,000
|Prepaid expenses |$17,000
|Warranty expenses |$(12,000)
- No temporary differences existed at the beginning of 2016.
- Pretax accounting income was $80,000 and taxable income was $15,000 for the year ended December 31, 2016.
- The tax rate is 40%.
Prepare the appropriate journal entry to record income taxes for 2016.
Do not copy from Chegg and give complete answer with explanation
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