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Zekany Corporation would have had identical Income before taxes on both Its Income tax returns and Income statements for the years 2016 through 2019 except
Zekany Corporation would have had identical Income before taxes on both Its Income tax returns and Income statements for the years 2016 through 2019 except for differences In depreclation on an operational asset The asset cost $100,000 and Is depreciated for Income tax purposes In the following amounts: 2016 $33,000 2017 44,000 2018 15,000 2019 8,000 The operational asset has a four-year life and no residual value. The straight-line methood is used for financial reporting purposes. Income amounts before depreclation expense and Income taxes for each of the four years were as follows. 2016 2017 2018 2019 Accounting income before taxes and depreclation $65,000 $85,000 $75,000 $75,000 Assume the average and marginal income tax rate for 2016 and 2017 was 30%; however, during 2017 tax legislation was passed to raise the tax rate to 40% beginning in 2018. The 40% rate remained in effect through the years 2018 and 2019, Both the accounting and Income tax perlods end December 31. Requirec Prepare the Journal entries to record Income taxes for the years 2016 through 2019. (If no entry is required for a trensaction/event, select "No Journel entry required" In the first account field.)
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