In the Current Year, Bruno Corporation Collected Rent of $3,600,000

question 39

Essay

In the current year, Bruno Corporation collected rent of $3,600,000. For income tax reporting, the rent is taxed when collected. For financial reporting, the rent is recognized as income in the period earned. At the end of the current year, the unearned portion of the rent collected in the current year amounted to $400,000. Bruno had no temporary differences at the beginning of the current year. Assume an income tax rate of 30%.
Required:
The current year's income tax liability from the tax return is $800,000. Prepare the journal entry to record income taxes for the year. Show well-labeled computations.

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Definitions:

Rate Of Inflation

The percentage increase in the general level of prices for goods and services in an economy over a period of time.

Rate Of Unemployment

The proportion of individuals in the labor force who are not currently employed but are actively seeking employment.

Discouraged Workers

Discouraged Workers are individuals who are not actively seeking employment due to believing no jobs are available for them or there are other barriers to employment.

Unemployment Statistics

The data and analysis regarding the percentage of the labor force that is jobless and actively seeking employment.