Rangee Rover Inc. had taxable income of $114,000 for the year. The GAAP basis of...
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Rangee Rover Inc. had taxable income of $114,000 for the year. The GAAP basis of accounts receivable (net) is $7,200 less than the tax basis of accounts receivable. Assuming a tax rate of 25%, record the income tax journal entry on December 31. Assume zero beginning balances in deferred tax accounts. Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account names and leave the Dr. and Cr. answers blank (zero).
I believe the Income Tax Expense is 21,300 and Deferred Tax Asset is 7,200 but please confirm!
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