EGR Company provided you with the following information:
2013 Net Income: $1,500,000 2014 Net Income: $900,000 2013 Tax rate: 35%
2014 Tax rate: 40%
In addition, the only difference between accounting and tax are warranty costs accrued of $100,000 i 2013.No actual warranty expenses were incurred in 2013 or 2014.Prepare journal entries for 2013 and 2014 to record income tax expense.

Question

Quizplus · Accepted Answer

The Answer of EGR Company provided you with the following information:
2013 Net Income: $1,500,000 2014 Net Income: $900,000 2013 Tax rate: 35%
2014 Tax rate: 40%
In addition, the only difference between accounting and tax are warranty costs accrued of $100,000 i 2013.No actual warranty expenses were incurred in 2013 or 2014.Prepare journal entries for 2013 and 2014 to record income tax expense.

EGR Company Provided You with the Following Information