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Nott Co. at the end of 2020, has the following information:
Pretax financial income $ 1,000,000
Pretax Taxable income $ 1,000,000
Extra depreciation taken for financial purposes 250,000
Estimated expenses deductible for taxes when paid 150,000
All differences between the two incomes will reverse equally in the next five years. Assuming a tax rate of 30% in all years
Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for 2020
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