4. The following information is for Z Corp's first year of operations. Amounts are in millions of dollars. The enacted tax rate is 25%. Accounting income Temporary differences: Rental Income Depreciation Expense Permanent Difference: Taxable income Year 2021 $80 6 -12 2 $76 Future Taxable Amounts 2022 2023 88 75 0 -4 $4 $3 2024 2025 63 -1 $3 58 -1 $2 Future Amount Total -6 $12 Required: Prepare the journal entries to record the income tax expense for each year. (show the computing process and precise journal entries)

4. The following information is for Z Corp's first year of operations. Amounts are in millions of dollars. The enacted tax rate is 25%. Accounting income Temporary differences: Rental Income Depreciation Expense Permanent Difference: Taxable income Year 2021 $80 6 -12 2 $76 Future Taxable Amounts 2022 2023 88 75 0 -4 $4 $3 2024 2025 63 -1 $3 58 -1 $2 Future Amount Total -6 $12 Required: Prepare the journal entries to record the income tax expense for each year. (show the computing process and precise journal entries)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

4. The following information is for Z Corp's first year of operations. Amounts are in millions of
dollars. The enacted tax rate is 25%.
Accounting income
Temporary differences:
Rental Income
Depreciation Expense
Permanent Difference:
Taxable income
Year
2021
$80
6
-12
2
$76
Future Taxable Amounts
2022 2023
88
75
0
-4
$4 $3
2024 2025
63
58
Future
Amount
Total
-1
-1
-6
$3 $2 $ 12
Required:
Prepare the journal entries to record the income tax expense for each year. (show the
computing process and precise journal entries)

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