J-Matt, Incorporated, had pretax accounting Income of $323,000 and taxable income of $360,000 in 2024. The only difference between accounting and taxable income is estimated product warranty costs of $37,000 for sales in 2024. Warranty payments are expected to be in equal amounts over the next three years (2025 to 2027) and will be tax deductible at that time. Recent tax legislation will change the tax rate from the current 25% to 20% in 2026. Determine the amounts necessary to record J-Matt's Income taxes for 2024 and prepare the appropriate journal entry. Complete this question by entering your answers in the tabs below. Income Tax General Journal Determine the amounts necessary to record J-Matt's income taxes for 2024. Current tax payable
J-Matt, Incorporated, had pretax accounting Income of $323,000 and taxable income of $360,000 in 2024. The only difference between accounting and taxable income is estimated product warranty costs of $37,000 for sales in 2024. Warranty payments are expected to be in equal amounts over the next three years (2025 to 2027) and will be tax deductible at that time. Recent tax legislation will change the tax rate from the current 25% to 20% in 2026. Determine the amounts necessary to record J-Matt's Income taxes for 2024 and prepare the appropriate journal entry. Complete this question by entering your answers in the tabs below. Income Tax General Journal Determine the amounts necessary to record J-Matt's income taxes for 2024. Current tax payable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Manji
![Brief Exercise 16-11 (Algo) Multiple tax rates [LO16-6]
J-Matt, Incorporated, had pretax accounting Income of $323,000 and taxable income of $360,000 in 2024. The only difference
between accounting and taxable income is estimated product warranty costs of $37.000 for sales in 2024. Warranty payments are
expected to be in equal amounts over the next three years (2025 to 2027) and will be tax deductible at that time. Recent tax
legislation will change the tax rate from the current 25% to 20% in 2026.
Determine the amounts necessary to record J-Matt's Income taxes for 2024 and prepare the appropriate Journal entry.
Complete this question by entering your answers in the tabs below.
General
Journal
Determine the amounts necessary to record J-Matt's income taxes for 2024.
Current tax payable
Income Tax
Income Tax
General Journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F098ae19a-f9fa-457e-ada3-494b921c33a0%2F02dd1ee8-df1c-4682-a6f2-6392c1e543ae%2Fehe85xg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Brief Exercise 16-11 (Algo) Multiple tax rates [LO16-6]
J-Matt, Incorporated, had pretax accounting Income of $323,000 and taxable income of $360,000 in 2024. The only difference
between accounting and taxable income is estimated product warranty costs of $37.000 for sales in 2024. Warranty payments are
expected to be in equal amounts over the next three years (2025 to 2027) and will be tax deductible at that time. Recent tax
legislation will change the tax rate from the current 25% to 20% in 2026.
Determine the amounts necessary to record J-Matt's Income taxes for 2024 and prepare the appropriate Journal entry.
Complete this question by entering your answers in the tabs below.
General
Journal
Determine the amounts necessary to record J-Matt's income taxes for 2024.
Current tax payable
Income Tax
Income Tax
General Journal
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