Question: A company facing a 25% tax rate has calculated its taxable income for the year to be $2,400,000. It made installment payments during the year

A company facing a 25% tax rate has calculated its taxable income for the year to be $2,400,000. It made installment payments during the year totalling $650,000; this amount has been recorded in an asset account as “income tax installments.”

Required:

Prepare the journal entry to record the adjusting entry for income taxes at the end of the year under the taxes payable method.

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