In the current year, Bruno Corporation collected rent of $3,600,000. For income tax reporting, the rent is
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In the current year, Bruno Corporation collected rent of $3,600,000. For income tax reporting, the rent is taxed when collected. For financial reporting, thee rent is recognized as income in the period earned. At the end of the current year the unearned portion of thee rent collected in the current year amounted to $400,000. Bruno had no temporary differences at the beginning of the current year. Assume an income tax rate of 30%. The current year's taxable income is $2,666,667. Prepare thee journal entry to record income taxes for the year. Show well labeled computations.
Related Book For
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold
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