Question: For 2010, its first year of operations, Johnson Advertising earned pretax accounting income (on the income statement) of $750,000. Taxable income (on the tax return

For 2010, its first year of operations, Johnson Advertising earned pretax accounting income (on the income statement) of $750,000. Taxable income (on the tax return filed with the Internal Revenue Service) is $650,000. The income tax rate is 35%. Record Johnson’s income tax for the year. Show what Johnson will report on its 2010 income statement and for this situation. Start the income statement with income before tax.

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