Gore Company,organized on January 2,2016,had pretax accounting income of $7,000,000 and taxable income of $10,000,000 for the year ended December 31,2016.The 2016 tax rate was 40%.The only difference between book and taxable income is estimated warranty costs.Expected payments and scheduled enacted tax rates are as follows:

Required:
Prepare one compound journal entry to record Gore's provision for taxes for the year 2016.

Question

Gore Company,organized on January 2,2016,had pretax accounting income of $7,000,000 and taxable income of $10,000,000 for the year ended December 31,2016.The 2016 tax rate was 40%.The only difference between book and taxable income is estimated warranty costs.Expected payments and scheduled enacted tax rates are as follows:
  
Required:
Prepare one compound journal entry to record Gore's provision for taxes for the year 2016.

Quizplus · Accepted Answer

The Answer of Gore Company,organized on January 2,2016,had pretax accounting income of $7,000,000 and taxable income of $10,000,000 for the year ended December 31,2016.The 2016 tax rate was 40%.The only difference between book and taxable income is estimated warranty costs.Expected payments and scheduled enacted tax rates are as follows:
  
Required:
Prepare one compound journal entry to record Gore's provision for taxes for the year 2016.

Gore Company,organized on January 2,2016,had Pretax Accounting Income of $7,000,000