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.

---

Definitions:

Universal Facial Expressions

Refers to the set of facial expressions that are recognized and understood across different cultures worldwide, indicating basic emotions such as happiness, sadness, anger, fear, surprise, and disgust.

Paul Ekman

A psychologist known for his work on the facial expressions and emotions, including the development of the Facial Action Coding System.

Simulating Anger

The act of pretending or mimicking the emotional state of anger, often used in psychological studies or acting to understand or convey the nuances of this emotion.

Cognitive Appraisals

The mental process of interpreting and evaluating situations, which can influence emotional responses and behavior.