Ingersoll Rand, organized on January 2, 2021, had pretax accounting income of $6,300,000 and taxable income of $8,880,000 for the year ended December 31, 2021. The 2021 tax rate was 25%. The only difference between book and taxable income is estimated warranty costs. Expected payments and scheduled enacted tax rates are as follows: 2022 $ 860,000 30 % 2023 430,000 30 % 2024 430,000 30 % 2025 860,000 35 % Required: Prepare one compound journal entry to record Ingersoll Rand's provision for taxes for the year 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Ingersoll Rand, organized on January 2, 2021, had pretax accounting income of $6,300,000 and taxable income of $8,880,000 for the year ended December 31, 2021. The 2021 tax rate was 25%. The only difference between book and taxable income is estimated warranty costs. Expected payments and scheduled enacted tax rates are as follows: 2022 $ 860,000 30 % 2023 430,000 30 % 2024 430,000 30 % 2025 860,000 35 % Required: Prepare one compound journal entry to record Ingersoll Rand's provision for taxes for the year 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...
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Ingersoll Rand, organized on January 2, 2021, had pretax accounting income of $6,300,000 and taxable income of $8,880,000 for the year ended December 31, 2021. The 2021 tax rate was 25%. The only difference between book and taxable income is estimated warranty costs. Expected payments and scheduled enacted tax rates are as follows:
| 2022 | $ | 860,000 | 30 | % | |
| 2023 | 430,000 | 30 | % | ||
| 2024 | 430,000 | 30 | % | ||
| 2025 | 860,000 | 35 | % | ||
Required:
Prepare one compound
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