Prepare the appropriate journal entry for brogan

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Brogan, Inc., reports bad debt expense using the allowance method. For tax purposes the direct write-off method is used. At the end of the current year, Brogan has accounts receivable and an allowance for uncollectible accounts of $4,000,000 and $300,000, respectively, and taxable income of $22,000,000. At the end of the previous year, Pocus reported a deferred tax asset of $90,000 related to the difference in reporting bad debts, its only temporary difference. The enacted tax rate is 35% each year.

Prepare the appropriate journal entry for Brogan to record the income tax provision for the current year. Show well-labeled supporting computations.

Reference no: EM13135894

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