The Information That Follows Pertains to Julia Company

question 82

Essay

The information that follows pertains to Julia Company:
(a.) Temporary differences for the year 2013 are summarized below.
Expenses deducted in the tax return, but not included in the income statement: 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 2013.
(c.) Pretax accounting income was $67,000 and taxable income was $8,000 for 2013.
(d.) There were no permanent differences.
(e.) The tax rate is 30%.
Required:
Prepare the journal entry to record the tax provision for 2013. Provide supporting computations.

---

Definitions:

Common Cost

A cost that is not directly attributable to any particular cost object, such as a product, department, or project.

Business Unit

A segment of a company with its distinct operations and management, often treated as an individual entity within the larger corporation for strategic and operational planning.

Avoidable

Something described as avoidable can be prevented or not incurred if certain actions are taken or certain conditions are met.

Performance Report

A document that compares actual results to planned or expected results in areas such as budgeting, operations, and project management.