Question - Gore Company, organized on January 2, 2016, had pretax accounting income of $6,000,000 and taxable income of $8,400,000 for the year ended December 31, 2016. The 2016 tax rate was 40%. The only difference between book and taxable income is estimated warranty costs. Expected payments and scheduled enacted tax rates are as follows:
|
2017
|
$800,000
|
35%
|
|
2018
|
$400,000
|
35%
|
|
2019
|
$400,000
|
35%
|
|
2020
|
$800,000
|
35%
|
Required:
Prepare one compound journal entry to record Gore's provision for taxes for the year 2016.
Prepare one compound journal entry to record Gore's provision for taxes for the year 2016.
Prepare one compound journal entry to record Gore's provision for taxes for the year 2016.