Problem:
The following information pertains to Julia Company:
A. Temporary differences for the year 2013 are summarized below:
Expenses deducted in the tax return, but not included in the income statement:
Expenses reported in the income statement but not deducted in the tax return: Warranty expense, 9,000
B. No temporary differences existed at the beginning of 2013
C. Pretax accounting income was $67,000 and taxable income was $8,000 for 2013
D. There were no permanent differences
E. The tax rate is 30%
Required:
Prepare the journal entry to record the tax provision for 2013. Provide supporting computations