Southern Corporation began operations in January2019 and purchased a machine for $120,000 at that time.Southern uses straight-line depreciation over a four-year periodfor financial reporting purposes. For tax purposes, the deductionis 50% of cost in 2019, 30% in 2020, and 20% in2021. Pretax accounting income for 2020 –which is the SECOND year of using this machine –is $150,000, which includes interest revenue of $20,000 frommunicipal bonds. The enacted tax rate is 30% for allyears. There are no other differences between accountingand taxable income.
Prepare the JE for 2020
