In 2024, the Pretax financial income was $825,000, which includes $30,000 of municipal bond income. On...

 

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In 2024, the Pretax financial income was $825,000, which includes $30,000 of municipal bond income. On June 1, 2024, an unexpected tax rate change occurred, causing the 2024 (and beyond) tax rates to increase to 28%. 1. In addition to the above temporary differences listed in 2023, on Sept 31, 2024, Price Corp purchased equipment for $325,000 (salvage value of $25,000, and a 4-year useful life). The table below lists depreciation for TAX purposes. Year Depreciation Schedule (TAXES) 2024 75,000 2025 120,000 2026 50,000 2027 35,000 2028 20,000 2. Price has updated its valuation allowance, and determined that it is more likely than not, that 5% of any DTA will not be realized. Prepare the journal entry for 2024 to record Income Tax Expense. In 2024, the Pretax financial income was $825,000, which includes $30,000 of municipal bond income. On June 1, 2024, an unexpected tax rate change occurred, causing the 2024 (and beyond) tax rates to increase to 28%. 1. In addition to the above temporary differences listed in 2023, on Sept 31, 2024, Price Corp purchased equipment for $325,000 (salvage value of $25,000, and a 4-year useful life). The table below lists depreciation for TAX purposes. Year Depreciation Schedule (TAXES) 2024 75,000 2025 120,000 2026 50,000 2027 35,000 2028 20,000 2. Price has updated its valuation allowance, and determined that it is more likely than not, that 5% of any DTA will not be realized. Prepare the journal entry for 2024 to record Income Tax Expense.