During Its First Year of Operations,Karol Corp

question 42

Essay

During its first year of operations,Karol Corp.reported the following information:
• Income before income taxes for the year was $550,000 and the tax rate was 35%.
• Depreciation expense was $100,000 and CCA was $50,000.
• Warranty expense was reported at $20,000,while actual cash paid out was $10,000.
• $25,000 of expenses included in income were not deductible for tax purposes.
• No other items affected deferred tax amounts besides these transactions.
Requirement:
Prepare the journal entries to record income tax expense for the year.

---

Definitions:

Clinical Simulation Mannequin

A high-fidelity model used in healthcare education to simulate patient scenarios for clinical training.

Educational Platform

Digital or online spaces designed to provide learning materials, tools, and resources to facilitate teaching and learning processes.

Computer Physician Order Entry (CPOE)

A system in healthcare that allows doctors to enter medical orders into a computer instead of using paper charts, reducing errors and improving efficiency.

Medication Errors

Mistakes in the prescribing, dispensing, or administration of drugs, which can lead to harm in patients.