Business, 01.10.2019 17:30 plshelpme53
Exeter corp. reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product sales. for tax purposes, the expense is deducted when paid. during its first year of operations, exeter reports pretax accounting income of $100,000. its income statement includes a $50,000 warranty expense that is deducted for tax purposes when paid in year 2 in the amount of $30,000 and year 3 in the amount of $20,000. exeter is subject to a tax rate of 40%. prepare the appropriate journal entry to record the company’s income tax expense for year 1. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)
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Exeter corp. reports warranty expense by estimating the amount that eventually will be paid to satis...
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