Question - 2018 Pretax Accounting Income: $400,000
All Fixed Assets Purchased Prior to January 1, 2018 were Fully Depreciated at 12/31/17
Fixed Assets purchased on January 1, 2018 for $100,000 and have Estimated Life of 4 Years
Depreciation for Accounting Purposes is Straight Line
Depreciation for Tax Purposes for 4 Year Assets is 50%, 40%, 5%, and 5%
Federal Tax Rate is 20%
1. What is the taxable income for the year ended December 31, 2018?
2. What is the required current/deferred tax journal entry at December 31, 2018?