Dunder Mifflin Inc. had one temporary difference in 2022 because their tax depreciation deduction exceeded their book depreciation expense by $74. Dunder Mifflin's pretax financial income is $1204 in 2022 and its tax rate is 20%. The company had no prior deferred tax balance. Dunder Mifflin's journal entry at the end of 2022 will involve:
Dunder Mifflin Inc. had one temporary difference in 2022 because their tax depreciation deduction exceeded their book depreciation expense by $74. Dunder Mifflin's pretax financial income is $1204 in 2022 and its tax rate is 20%. The company had no prior deferred tax balance. Dunder Mifflin's journal entry at the end of 2022 will involve:
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 12P
Related questions
Question
1.
Dunder Mifflin Inc. had one temporary difference in 2022 because their tax depreciation deduction exceeded their book depreciation expense by $74. Dunder Mifflin's pretax financial income is $1204 in 2022 and its tax rate is 20%. The company had no prior
a.
A credit to Income Tax Expense of $240.80
b.
A debit to
c.
A credit to
d.
A credit to Income Tax Payable of $240.80
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you