North Dakota Corporation began operations in January 2015 and purchased a machine for $20,000.North Dakota uses straight-line depreciation over a four-year period for financial reporting purposes.For tax purposes,the deduction is 50% of cost in 2015,30% in 2016,and 20% in 2017.Pretax accounting income for 2015 was $150,000,which includes interest revenue of $20,000 from municipal bonds.The enacted tax rate is 30% for all years.There are no other differences between accounting and taxable income.
Required:
Prepare a journal entry to record income taxes for the year 2015.Show well-labeled computations for the amount of income tax payable and the change in the deferred tax account.

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The Answer of North Dakota Corporation began operations in January 2015 and purchased a machine for $20,000.North Dakota uses straight-line depreciation over a four-year period for financial reporting purposes.For tax purposes,the deduction is 50% of cost in 2015,30% in 2016,and 20% in 2017.Pretax accounting income for 2015 was $150,000,which includes interest revenue of $20,000 from municipal bonds.The enacted tax rate is 30% for all years.There are no other differences between accounting and taxable income.
Required:
Prepare a journal entry to record income taxes for the year 2015.Show well-labeled computations for the amount of income tax payable and the change in the deferred tax account.

North Dakota Corporation Began Operations in January 2015 and Purchased