The information below pertains to Mondavi Corporation: (a.) For the current year...
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Accounting
The information below pertains to Mondavi Corporation:
(a.) For the current year temporary differences existed between the financial statement carrying amounts and the tax basis of the following:
Carrying Amount
Tax Basis
Future Taxable or (Deductible) Amount
Buildings and equipment
$
65,000,000
$
49,500,000
$
15,500,000
Prepaid insurance
1,500,000
0
1,500,000
Liability-loss contingency
10,500,000
0
(10,500,000
)
(b.) No temporary differences existed at the beginning of the year.
(c.) Pretax accounting income was $350,000,000 and taxable income was $125,000,000 for the year and the tax rate is 35%.
Required: Prepare one journal entry to record the tax provision for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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