Friedman Construction reported taxable income of $50,000 for 2015, its first fiscal year. The enacted tax rate

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Friedman Construction reported taxable income of $50,000 for 2015, its first fiscal year. The enacted tax rate for 2015 is 40%. Enacted tax rates and deductible amounts for 2016-2018 are as follows:

Friedman Construction reported taxable income of $50,000 for 2015, its

1. Prepare the journal entries necessary to record income taxes for 2015. Assume that there will be sufficient income in each future year to realize any deductible amounts. For classification purposes, assume that all deductible amounts relate to noncurrent items.
2. Repeat (1), assuming that it is more likely than not that taxable income for all future periods will be zero or less.

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Intermediate Accounting

ISBN: 978-1133957911

19th edition

Authors: Earl K. Stice, James D. Stice

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