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The Durn Company began operations at the beginning of 2010. At the end of 2010 the company reported taxable income of $9,800 and financial income of $11,200, because of a single temporary difference. The income tax rate for the current year is 30%, but Congress has enacted a 40% tax rate for 2011 and beyond.
RequiredPrepare the income tax journal entry of the Durn Company at the end of 2010.
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