A company began operations in January Year 1 and purchased a vehicle for $40,000. The company...

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A company began operations in January Year 1 and purchased a vehicle for $40,000. The company plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in Year 1, 30% in Year 2, and 20% in Year 3. Pretax accounting income for Year 1 was $380,000, which includes interest revenue of $44,000 from municipal governmental bonds. The enacted tax rate is 25%. Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table and prepare the journal entry to record income taxes in Year 1. 2. What is the company's Year 1 net income? Complete this question by entering your answers in the tabs below. Required 1 Calculation General Journal Required 2 Complete the following table to record income taxes in Year 1. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in whole dollars. Description Pretax accounting income Permanent difference Income subject to taxation Temporary difference Income taxable in current year Amount Tax Rate $ 380,000 Tax Recorded as: $ 380,000 = Income tax expense = Deferred tax liability $ 380,000 < Required 1 Calculation = Income tax payable General Journal > A company began operations in January Year 1 and purchased a vehicle for $40,000. The company plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in Year 1, 30% in Year 2, and 20% in Year 3. Pretax accounting income for Year 1 was $380,000, which includes interest revenue of $44,000 from municipal governmental bonds. The enacted tax rate is 25%. Assuming no differences between accounting income and taxable income other than those described above: Required: 1. Complete the following table and prepare the journal entry to record income taxes in Year 1. 2. What is the company's Year 1 net income? Complete this question by entering your answers in the tabs below. Required 1 Calculation General Journal Required 2 Complete the following table to record income taxes in Year 1. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in whole dollars. Description Pretax accounting income Permanent difference Income subject to taxation Temporary difference Income taxable in current year Amount Tax Rate $ 380,000 Tax Recorded as: $ 380,000 = Income tax expense = Deferred tax liability $ 380,000 < Required 1 Calculation = Income tax payable General Journal >