Question: Actual quarterly earnings and quarterly estimates of annual earnings for

Actual quarterly earnings and quarterly estimates of annual earnings for Sloan Company for the year ended December 31, 2008 are as follows:


The combined state and federal tax rate for 2008 is 30%. Sloan Company estimated it would have permanent differences between accounting income and taxable income during 2008. Each quarter’s estimate of these annual differences is provided in the following table:


The actual amount of permanent differences for 2008 were environmental penalties, $14,000 dividend exclusion, $55,000.

Required:
Prepare journal entries to record Sloan Company’s 2008 quarterly income taxprovisions.
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  • CreatedMarch 13, 2015
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