Prepare the journal entry to record income tax expense

Reference no: EM133609357

Question: The amounts are in millions of dollars. Accounting income for current year $77,500 On December 31st of the first year Harris received a rent payment to their tenant in the amount of $16,500. The payment represented 3 years advance payments of rent. Accounting income in Year 2 was $81,250. The enacted tax rate for Year 1 and Year 2 was 21% and the enacted tax rate for all subsequent years is 27%. Required: What is Taxable income in Year 1? Prepare the Journal entry to record income tax expense for Year 1. What is the amount of net income reported on the income statement for Year 1? What is Taxable Income in Year 2? Prepare the journal entry to record income tax expense for Year 2. What is the amount net income reported on the income statement for Year 2?

Reference no: EM133609357

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