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Captins Catering had temporary difference related to the following future(deductible) or taxable amounts on December 31,2020
a) Prepaid Expenses $12,000
b) Depreciation Expense $45,000 and
c) Warranty Expense($24,000). There were no temporary differences on January income. The tax rate is 35%.
Problem 1: Prepare the journal entry to record income for 2020.
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