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Vaughn Inc. had pretax financial income of $142,100 in 2020. Included in the computation of that amount is insurance expense of $3,800 which is not

Vaughn Inc. had pretax financial income of $142,100 in 2020. Included in the computation of that amount is insurance expense of $3,800 which is not deductible for tax purposes. In addition, depreciation for tax purposes exceeds accounting depreciation by $9,400.

Prepare Vaughns journal entry to record 2020 taxes, assuming a tax rate of 25%.

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