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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XYZ Corp provided you with the following information
Clementi Corporation provided the following information for the current year 2022: Accounting income (pre-tax) in 2022 is $400 million. Installment Receivable at the end of 2022 equaled $20 million. and is expected to be collected equally in 2023 and 2024. Warranty Liability balance at the end of 2022 equaled $16 million and is expected to be paid equally in 2023 and 2024. The income tax rate is 20%. Clementi Corporation records income tax payable equal to: O $79.2 million O $72.8 million O $87.2 million O $80.8 million.
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