Allmond Corporation, organized on January 3, 2018, had pretax accounting income of $32 million and...
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Accounting
Allmond Corporation, organized on January 3, 2018, had pretax accounting income of $32 million and taxable income of $44 million for the year ended December 31, 2018. The 2018 tax rate is 35%. The only difference between accounting income and taxable income is estimated product warranty costs. Expected payments and scheduled tax rates (based on recent tax legislation) are as follows:
2019
$
3 million
30
%
2020
3 million
30
%
2021
2 million
30
%
2022
4 million
25
%
Required:1. Determine the amounts necessary to record Allmonds income taxes for 2018 and prepare the appropriate journal entry. 2. What is Allmonds 2018 net income?
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