5. (6 points) Mackey Industries has pretax accounting income of $32 million for the year ended...

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5. (6 points) Mackey Industries has pretax accounting income of $32 million for the year ended December 31, 2021. The tax rate is 25%. The only difference between accounting income and taxable income relates to an operating lease in which Mackey is the lessee. The inception of the lease was December 28, 2021. An $8 million advance rent payment at the inception of the lease is tax-deductible in 2021 but, for financial reporting purposes, represents prepaid rent expense to be recognized equally over the four-year lease term. Prepare the appropriate journal entry to record Mackey's income taxes for 2021. Debit Account Credit Account Debit Amount Credit Amount 5. (6 points) Mackey Industries has pretax accounting income of $32 million for the year ended December 31, 2021. The tax rate is 25%. The only difference between accounting income and taxable income relates to an operating lease in which Mackey is the lessee. The inception of the lease was December 28, 2021. An $8 million advance rent payment at the inception of the lease is tax-deductible in 2021 but, for financial reporting purposes, represents prepaid rent expense to be recognized equally over the four-year lease term. Prepare the appropriate journal entry to record Mackey's income taxes for 2021. Debit Account Credit Account Debit Amount Credit Amount

Answer rating: 100% (QA)

in millions Future Current Taxable Year 2021 Future Taxable ... View the full answer