EZ, Inc., reports pretax accounting income of $400,000, but due to a single temporary difference, taxable income is $500,000. At the beginning of the year, no temporary differences existed. EZ is subject to a tax rate of 40%.
Required:
Prepare the appropriate journal entry to record EZ's income taxes. Show well-labeled computations.

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The Answer of EZ, Inc., reports pretax accounting income of $400,000, but due to a single temporary difference, taxable income is $500,000. At the beginning of the year, no temporary differences existed. EZ is subject to a tax rate of 40%.
Required:
Prepare the appropriate journal entry to record EZ's income taxes. Show well-labeled computations.

EZ, Inc, Reports Pretax Accounting Income of $400,000, but Due to to a Single