Gore Company, organized on January 2, 2018, had pretax accounting income of $7,000,000 and taxable income of $10,000,000 for the year ended December 31, 2018. The 2018 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 2018.

Question

Gore Company, organized on January 2, 2018, had pretax accounting income of $7,000,000 and taxable income of $10,000,000 for the year ended December 31, 2018. The 2018 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 2018.

Quizplus · Accepted Answer

The Answer of Gore Company, organized on January 2, 2018, had pretax accounting income of $7,000,000 and taxable income of $10,000,000 for the year ended December 31, 2018. The 2018 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 2018.

Gore Company, Organized on January 2, 2018, Had Pretax Accounting