1. At December 31, 2017, temporary differences were associated with the following future taxable (deductible) amounts:...
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1. At December 31, 2017, temporary differences were associated with the following future taxable (deductible) amounts: Depreciation Prepaid expenses Warranty expenses 2. No temporary differences existed at the beginning of 2017. $60,000 17,000 (12,000) 3. Pretax accounting income was $80,000 and taxable income was $15,000 for the year ended December 31, 2017. 4. The tax rate is 40%. Required: Determine the amounts necessary to record income taxes for 2017 and prepare the appropriate journal entry. 1. At December 31, 2017, temporary differences were associated with the following future taxable (deductible) amounts: Depreciation Prepaid expenses Warranty expenses 2. No temporary differences existed at the beginning of 2017. $60,000 17,000 (12,000) 3. Pretax accounting income was $80,000 and taxable income was $15,000 for the year ended December 31, 2017. 4. The tax rate is 40%. Required: Determine the amounts necessary to record income taxes for 2017 and prepare the appropriate journal entry.
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