The information that follows pertains to Julia Company:
(a. )Temporary differences for the year 2016 are summarized below.
Expenses deducted in the tax return,but not included in the income statement:
Depreciation $60,000
Prepaid expense 8,000
Expenses reported in the income statement,but not deducted in the tax return:
Warranty expense 9,000
(b. )No temporary differences existed at the beginning of 2016.
(c. )Pretax accounting income was $67,000 and taxable income was $8,000 for 2016.
(d. )There were no permanent differences.
(e. )The tax rate is 30%.
Required:
Prepare the journal entry to record the tax provision for 2016.Provide supporting computations.

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The Answer of The information that follows pertains to Julia Company:
(a. )Temporary differences for the year 2016 are summarized below.
Expenses deducted in the tax return,but not included in the income statement:
Depreciation $60,000
Prepaid expense 8,000
Expenses reported in the income statement,but not deducted in the tax return:
Warranty expense 9,000
(b. )No temporary differences existed at the beginning of 2016.
(c. )Pretax accounting income was $67,000 and taxable income was $8,000 for 2016.
(d. )There were no permanent differences.
(e. )The tax rate is 30%.
Required:
Prepare the journal entry to record the tax provision for 2016.Provide supporting computations.

The Information That Follows Pertains to Julia Company