At the End of Its First Year of Operations, Prince

question 163

Essay

At the end of its first year of operations, Prince Charming Corporation had a current liability of $300,000 for unearned rent. This was the only difference between pretax accounting income and taxable income. Assume an income tax rate of 40%.
Required:
The tax liability from the tax return is $750,000. Prepare the journal entry to record income taxes for Prince Charming's first year of operations. Show well-labeled computations.

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Definitions:

Narrowing Online Searches

Refining search engine queries to reduce the number of results and increase the relevance of those results to the user's query.

Employer

An individual or entity that hires and pays employees for their labor or services within an organization.

Profession

A type of job that requires specialized education, training, and qualifications, often with a commitment to a specific code of ethics.

Electronic Substitute

A digital alternative to traditional paper-based methods, forms, or tools.