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Easton Co, at the end of 2020, its first year of operations, prepared a reconcliation between pretax financial income and taxable income as follows: The
Easton Co, at the end of 2020, its first year of operations, prepared a reconcliation between pretax financial income and taxable income as follows: The estimated litigation expense of $1 , 000 , 000 will be deductible in 2021 when it is expected to be paid. The gross profit from the installment sales will be taxed in the amount of $400 , 000 in each of the next two years. The income tax rate is 20% for 2020 , 25% for 2021 , and 30% for 2022. Prepare the required journal entry at the end of 2020
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