Van Zandt Corp. reports $530,000 of pretax financial income in 2021, which includes $50,000 of expenses for fines levied against the company for OSHA workplace safety violations. These expenses are not tax deductible.

Because of the use of accelerated depreciation for tax purposes, taxable income is $160,000 lower in 2021. This is Van Zandt's only temporary difference, and it will reverse by $100,000 in 2022 and $60,000 in 2023.

The enacted tax rate is 25% for all years.

Prepare Van Zandt's required journal entry for 2021 income taxes.

Answer rating: 100% (QA)

date Account Title Debit Credit Income tax expense Provision 530... View the full answer