The Evelyn group uses straight-line depreciation for financial reporting purposes for equipment costing $740,000 and with an expected useful life of 4 years and no residual value. For tax purposes, the deduction is 40% 30%, 20% and 10% in those years. Pretax accounting income the first year the equipment was used was $840,000, which includes interest revenue of $23,000 from municipal bonds. Other than the two described, there are no differences between accounting income and taxable income. The enacted tax rate is 40%

Prepare the journal entry to record income taxes.

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view transaction list Event 1 view general journal General Journal Income tax expense Deferred tax liability Income tax payable Debit Credit view transaction list Event 1 view general journal General Journal Income tax expense Deferred tax liability Income tax payable Debit Credit

Answer rating: 100% (QA)

General Journal Debit Credit Income Tax Expense 326800 ... View the full answer