J.W. Jones Markets, Inc. accepts prepaid grocery orders for home and commercial delivery. This year, the company collected $160,000 in advance orders. J.W. Jones delivered $48,000 in grocery orders this year. The company paid $15,000 in insurance premiums for a policy covering the life of its founder expense is $800,000. J. W. Jones is subject t a 40% income tax rate.
Required
a. Prepare the journal entry to record the current year’s income tax provision
b. Prepare the footnote, in dollars and percentages, to reconcile the company’s federal income tax rate to its effective (actual) tax rate.