Reference no: EM132869513

Question - The following is selected information from the accounting records of Slow Inc. for 20X9 its first year of operations:

Earnings before income taxes $610,000

In determining pre-tax accounting earnings, the following deductions were made:

a. Golf club dues 18,500

b. Accrued warranty costs 52,000

c. Depreciation 68,500

For tax purposes, the following deductions were made:

a. Warranty costs incurred 38,500

b. CCA 137,000

The capital assets, originally costing $685,000, are depreciated on a straight-line basis over 10 years, with zero residual value, with a full year of depreciation taken in Year 1. The tax rate is 34%.

Required - Make the journal entry to record income tax at the end of 20X9.