The Information That Follows Pertains to Julia Company

question 13

Essay

The information that follows pertains to Julia Company:
(a.) Temporary differences for the year 2018 are summarized below.
Expenses deducted in the tax return, but not included in the income statement:
Depreciation $60,000
Prepaid expense 8,000
Expenses reported in the income statement, but not deducted in the tax return:
Warranty expense 9,000
(b.) No temporary differences existed at the beginning of 2018.
(c.) Pretax accounting income was $67,000 and taxable income was $8,000 for 2018.
(d.) There were no permanent differences.
(e.) The tax rate is 30%.
Required:
Prepare the journal entry to record the tax provision for 2018. Provide supporting computations.

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Definitions:

Child Support Payments

Financial contributions that a noncustodial parent is required to make to support their children's living expenses.

Deadbeat Parents

Refers to parents who willfully neglect their financial responsibilities to their children, often failing to provide necessary support.

Court Order

A formal statement issued by a court that requires a person or entity to do or not do specific things.

Artificial Insemination

A medical procedure used to treat infertility that involves direct insertion of semen into a woman's womb.