Zekany Corporation would have had identical income before taxes on both its income tax returns...
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Accounting
Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years through except for differences in depreciation on an operational asset. The asset cost $ and is depreciated for income tax purposes in the following amounts:
$
The operational asset has a fouryear life and no residual value. The straightline method is used for financial reporting purposes.
Income amounts before depreciation expense and income taxes for each of the four years were as follows:
Accounting income before taxes and depreciation $ $ $ $
Assume the income tax rate for and was ; however, during tax legislation was passed to raise the tax rate to beginning in The rate remained in effect through the years and Both the accounting and income tax periods end December
Required:
Prepare the journal entries to record income taxes for the years through
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