Ingersoll Rand, organized on January 2, 2021, had pretax accounting income of $6,300,000 and taxable income of $8,880,000 for the year ended December 31, 2021. The 2021 tax rate was 25%. The only difference between book and taxable income is estimated warranty costs. Expected payments and scheduled enacted tax rates are as follows: 2022 $ 860,000 30 % 2023 430,000 30 % 2024 430,000 30 % 2025 860,000 35 % Required: Prepare one compound journal entry to record Ingersoll Rand's provision for taxes for the year 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Ingersoll Rand, organized on January 2, 2021, had pretax accounting income of $6,300,000 and taxable income of $8,880,000 for the year ended December 31, 2021. The 2021 tax rate was 25%. The only difference between book and taxable income is estimated warranty costs. Expected payments and scheduled enacted tax rates are as follows: 2022 $ 860,000 30 % 2023 430,000 30 % 2024 430,000 30 % 2025 860,000 35 % Required: Prepare one compound journal entry to record Ingersoll Rand's provision for taxes for the year 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 9MC: Brooks Company reported a prior period adjustment of 512,000 in pretax financial "income" and...
Related questions
Question
Ingersoll Rand, organized on January 2, 2021, had pretax accounting income of $6,300,000 and taxable income of $8,880,000 for the year ended December 31, 2021. The 2021 tax rate was 25%. The only difference between book and taxable income is estimated warranty costs. Expected payments and scheduled enacted tax rates are as follows:
| 2022 | $ | 860,000 | 30 | % | |
| 2023 | 430,000 | 30 | % | ||
| 2024 | 430,000 | 30 | % | ||
| 2025 | 860,000 | 35 | % | ||
Required:
Prepare one compound
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
