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Prepare the appropriate journal entry to record income taxes in 2025.

Prepare the appropriate journal entry to record income taxes in 2025.

FINANCIAL ACCOUNTING
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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In 2024, Ryan Management collected rent revenue for 2025 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2024. The deferred portion of the rent collected in 2024 was $178.0 million. The tax rate is 25%. Suppose the deferred portion of the rent collected was $72 million at the end of 2025. Taxable income is $700 million. Prepare the appropriate journal entry to record income taxes in 2025. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). No 1 Transaction 1 Income tax expense Deferred tax asset Income tax payable Answer is not complete. General Journal 000 Debit Credit 175.0
Transcribed Image Text:In 2024, Ryan Management collected rent revenue for 2025 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2024. The deferred portion of the rent collected in 2024 was $178.0 million. The tax rate is 25%. Suppose the deferred portion of the rent collected was $72 million at the end of 2025. Taxable income is $700 million. Prepare the appropriate journal entry to record income taxes in 2025. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). No 1 Transaction 1 Income tax expense Deferred tax asset Income tax payable Answer is not complete. General Journal 000 Debit Credit 175.0
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