Question - A. J. Johnson & Co Record certain revenues on its books in 2015 and 2016 of $15,400 and $16,600, respectively. However, such revenues were not subject to income taxation until 2017. The company records reveal pretax financial income and taxable income for the three-year period as follows:
|
|
Financial Income
|
Taxable Income
|
|
2015
|
$44,200
|
28,800
|
|
2016
|
38,200
|
21,600
|
|
2017
|
21,100
|
53,100
|
Assume that Johnson's tax rate is 40% for all periods.
Prepare the journal entries necessary at the end of each year to record income taxes.