Chapter 17, Problem 17.1E

a.

To determine

Income tax payable, deferred tax provision and income tax expense for 2^nd year.

Given Information:

Cost of complex was 6,000,000.

Useful life is 6 years.

Tax depreciation percent for first year was 20% and for second year 32%.

Income tax rate is 40%.

Income before depreciation is $3,700,000.

b.

To determine

To prepare: Journal entry to record accrual tax at the end of 2^nd year.