Question: In the current year, Madison Corporation had $ 5 0 , 0 0 0 of taxable income at a tax rate of 2 5 %

In the current year, Madison Corporation had $50,000 of taxable income at a tax rate of 25%. During the year, Madison began offering warranties on its products and has a warranty liability for financial reporting purposes of $5,000 at the end of the year. Warranty expenses are not deductible until paid for income tax purposes.
Required:
Prepare the journal entry to record Madisons income taxes at the end of the year.

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