In December 2022, J-Matt, Inc. collected rent in advance from tenants who will begin occupying the rental space in January 2023. For financial reporting purposes, J-Matt recorded the rent as deferred revenue when received in 2022 and will record the rent as revenue in January 2023 when the tenants occupy the rental space. For tax reporting, the rent is taxable in 2022 when collected. The deferred portion of the rent collected in 2022 was $122 million. Taxable income is $540 million in 2022. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the appropriate journal entry to record J-Matt's provision for income taxes in 2022.
In December 2022, J-Matt, Inc. collected rent in advance from tenants who will begin occupying the rental space in January 2023. For financial reporting purposes, J-Matt recorded the rent as deferred revenue when received in 2022 and will record the rent as revenue in January 2023 when the tenants occupy the rental space. For tax reporting, the rent is taxable in 2022 when collected. The deferred portion of the rent collected in 2022 was $122 million. Taxable income is $540 million in 2022. No temporary differences existed at the beginning of the year, and the tax rate is 25%.
Prepare the appropriate
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