Company P had pretax profit of $30,000 in 20A and $34,000 in 20B. A revenue of $2,000 was included correctly on the 20A income statement and was properly reported on the 20B income tax return. The corporate income tax rate was 25%. Give the entries relating to the incurrence of the tax liability for 20A and 20B:
20A:
20B:

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The Answer of Company P had pretax profit of $30,000 in 20A and $34,000 in 20B. A revenue of $2,000 was included correctly on the 20A income statement and was properly reported on the 20B income tax return. The corporate income tax rate was 25%. Give the entries relating to the incurrence of the tax liability for 20A and 20B:
20A:
20B:

Company P Had Pretax Profit of $30,000 in 20A and $34,000