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Evergreen Companys reconciliation between pretax GAAP income and taxable income follows for the year. ...

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Accounting

Evergreen Companys reconciliation between pretax GAAP income and taxable income follows for the year.

Pretax GAAP income $320,000

Depreciation adjustment (64,000)

Permanent difference 2,000

Taxable income $258,000

The company had one temporary difference due to the GAAP basis of equipment exceeding the tax basis of equipment. Record the income tax journal entry for the year, assuming a tax rate of 25%. Assume that the January 1 deferred tax liability balance was $8,000.

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