Appropriate journal entry to record ez income taxes

Reference no: EM13143593

EZ, Inc., reports pretax accounting income of $400,000, but due to a single temporary difference, taxable income is $500,000. At the beginning of the year, no temporary differences existed. EZ is subject to a tax rate of 40%.

Required:

Prepare the appropriate journal entry to record EZ's income taxes. Show well-labeled computations.

Reference no: EM13143593

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