Textbook Problem

Future Taxable Amount Arrow Company began operations at the beginning of 2019, At the end of 2019, Arrow reported taxable income of $20,800 and pretax financial income of $22,200 because of a single temporary difference. The income tax rate for the current year is 30%, but Congress has enacted a 40% tax rate for 2020 and beyond.

Required:

Prepare Arrow’s income tax journal entry at the end of 2019.