EGR Company Provided You with the Following Information

question 62

Short Answer

EGR Company provided you with the following information:
2013 Net Income: $1,500,000
2014 Net Income: $900,000
2013 Tax rate: 40%
2014 Tax rate: 35%
In addition,the only difference between accounting and tax are warranty costs accrued of $100,000 in 2013.No actual warranty expenses were incurred in 2013 or 2014.Prepare journal entries for 2013 and 2014 to record income tax expense.

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Definitions:

Unbiased

Showing no prejudice or favoritism, maintaining impartiality.

Recorded Interview

An interview whose contents have been documented through audio or video recording.

Objective

An unbiased and impartial stance or goal that is not influenced by personal feelings or opinions.

Personal Biases

Individual preconceptions or prejudices toward specific groups, topics, or ideas that can affect judgment and decision-making.