I have all the entries finished except this one attached in the photo. The information you’ll need is what is the photo attached in this email and income before income taxes = $11,615,274. Use MACRS to understand the book tax difference. Permanent book tax difference and deductibles are also necessary to complete this entry. Beginning deferred tax asset is debited for $3,500,000, and beginning deferred tax liability is credited for 270,000. These are critical, and the DTA and DTL could either be debited or credited in the entry. Future differences are also to be accounted for, and it is very important to note that depreciation started in 2021, not 2020. This is not specified in the question, but was told by my professor.
The Correct Answer and Explanation is:
Sure, I can help with that. Please upload the photo you mentioned so I can see the information you’re referring to. Once I have that, I’ll calculate the correct journal entry and provide a 300-word explanation based on the data provided, including income before income taxes, MACRS depreciation, deferred tax assets/liabilities, and permanent differences.