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In: AccountingCompany Y had book income of $600,000. The following items wereidentified:1. Income from PA...Company Y had book income of $600,000. The following items wereidentified:1. Income from PA Municiple Bonds: 10,0002. Excess Depreciation Expense: 60,0003. Officers Life Insurance Expense: 5,0004. Bad Debt Provision (Expense): 7,000 (no- charge offs thisyear)5. Warranty Reserve (Expense): 12,000 (no claims this year)6. Meals and Entertainment Expense: 20,000 (100% ofexpenses)Company Y's tax rate is 40%Beginning of the year, cumulative temporary difference iscomputed as follows:Book Accumulated Depreciation: 110,000Tax Accumulated Depreciation: 150,000Cumulative Difference in PP&E: 40,000Cumulative Difference in Accounts Receuvable Provision:20,000Cumulative Difference in Warranty Reseve: 80,000Taxable Income: 674,000Deferred Tax Asset: 31,600Income Tax Payable: 269,600Income Tax Expense: 238,0001. Calculate Deferred expense/benefit2. Prepare an adjusting journal entry to record thedeferred tax provision3. Calculate total provision (current plusdeffered)