Discussion Post: Corporate Taxation
Giada Foods reported $940 million in income before income taxes for 2021, its first year of operations. Tax depreciation exceeded depreciation for financial reporting purposes by $100 million. The company also had non-tax-deductible expenses of $80 million relating to permanent differences. The income tax rate for 2021 was 25%, but the enacted rate for years after 2021 is 30%.
The balance in the deferred tax liability in the December 31, 2021, balance sheet is:
• $16 million
• $25 million
• $30 million
• $54 million
What would be the full journal entry to record the above amount?
The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.