A company's income statement reported net income of $80,000 during 2016. The income tax return excluded a revenue item of $10,000 (reported on the income statement) because under the tax laws the $10,000 would not be reported for tax purposes until 2017.
Required:
Prepare the journal entry to record the 2016 income tax expense assuming a 40% tax rate.

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The Answer of A company's income statement reported net income of $80,000 during 2016. The income tax return excluded a revenue item of $10,000 (reported on the income statement) because under the tax laws the $10,000 would not be reported for tax purposes until 2017.
Required:
Prepare the journal entry to record the 2016 income tax expense assuming a 40% tax rate.

A Company's Income Statement Reported Net Income of $80,000 During