In 2023, IRS Company reported pretax financial income of $260,000. IRS Company paid rent in advance of $30,000 to Housing Corporation. For book purposes, there is a deferral of $30,000 for the rent paid in advance. For book purposes, the rent expense will be recognized in 2024. The company's tax rate is 35%. 2023 is the company's first year of operations. 

1. Compute IRS Company's taxable income for 2023. 

2. Prepare IRS Company's journal entry for 2023.

Answer rating: 100% (QA)

To compute IRS Companys taxable income for 2023 we need to start with the pretax financial income an... View the full answer