Gore Company, organized on January 2, 2021, had pretax accounting income of $6,200,000 and taxable income of $8,720,000 for th year ended December 31, 2021. The 2021 tax rate was 25%. The only difference between book and taxable income is estimated warranty costs. Expected payments and scheduled enacted tax rates are as follows: 2022 $840,000 308 420,000 30 2023 2024 420,000 308 2025 840,000 358 Required: Prepare one compound journal entry to record Gore's provision for taxes for the year 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Gore Company, organized on January 2, 2021, had pretax accounting income of $6,200,000 and taxable income of $8,720,000 for th year ended December 31, 2021. The 2021 tax rate was 25%. The only difference between book and taxable income is estimated warranty costs. Expected payments and scheduled enacted tax rates are as follows: 2022 $840,000 308 420,000 30 2023 2024 420,000 308 2025 840,000 358 Required: Prepare one compound journal entry to record Gore's provision for taxes for the year 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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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