Discuss what is the journal entry to record the tax accrual

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BBY is a calendar year accrual method corporation with a marginal and effective tax rate of 34%. It had $5,000,000 of financial income before making the following cash payments on December 31,2011:

$4,000 paid to a consultant for work to be performed in January 2012.
$600,000 for equipment delivered on December 1, 2011. The equipment has a useful life of 10 years for financial accounting and 7 years for tax accounting. this was the only asset purchased in 2011. (MACRS mid-quarter percentage is 3.57. the Sec.179 deduction was not taken)
$17,000 for property tax for the first six months of 2012.
$84,000 for a two-year office lease beginning December 1,20111.
$230,000 for inventory purchases. $100,000 was on-hand at 12/31/11
for each of these expenditures:

How are these expenditures reported for financial and taxable income?

What is the financial tax expense?

What is tax liability?

What is the journal entry to record the tax accrual?

Reference no: EM131794172

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