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Question - In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $338.0 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Suppose the deferred portion of the rent collected was $112 million at the end of 2022. Taxable income is $1,300 million. Prepare the appropriate journal entry to record income taxes in 2022.
Financial Statement Analysis and Preparation
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