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Record the journal entry for spactacular inc tax expense

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Reference no: EM132969896

On January 1, 2020, SPACtacular Inc. acquired Druggy McBiotech Corp for $200 and recorded $150 of intangible assets. The tax code requires straight-line amortization of these intangible assets over 15 years. The financial accounting standard requires testing these intangible assets for impairment and recording an impairment if there is one.

On December 31, 2020, SPACtacular Inc. determined that the intangible assets were not impaired. The company recorded pre-tax book income of $30. The corporate income tax rate is 30%. The company did not have any other book-tax differences.

Problem 1: Record the journal entry for SPACtacular Inc.'s tax expense, taxes payable, and deferred tax assets or liabilities

Reference no: EM132969896

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