Question

help asap please

A company reports 2021 pretax accounting income of $70 million, but because of a single temporary difference, taxable income is only $37 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the appropriate journal entry to record income taxes. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Enter your answers in millions rounded to 2 decimal places (.e., 5,500,000 should be entered as 5.50).) Answer is not complete. No Transaction General Journal Credit Debit 17 500 0000 Income tax expense Deferred to ability Income tax payetle

Answer 1

		Tax @ 25%
Accounting profit in millions	$       70.00	$        17.50
Temporary difference	$       33.00	$          8.25
Taxable income	$       37.00	$          9.25
Income tax expense          Dr	$       17.50
To Income tax liability		$          9.25
To Deferred tax liability		$          8.25
(Being tax liability accrued and deferred tax liability recognized)