What is the journal entry to record income taxes

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Question - North Dakota Corporation began operations in January 2015 and purchased a machine for $29,000. North Dakota uses straight-line depreciation over a four-year period for financial reporting purposes. For tax purposes, the deduction is 40% of cost in 2015, 30% in 2016, and 30% in 2017. Pretax accounting income for 2015 was $159,000, which includes interest revenue of $24,500 from municipal bonds. The enacted tax rate is 30% for all years. There are no other differences between accounting and taxable income.

What is the journal entry to record income taxes for the year 2015?

Reference no: EM131692481

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