Problem
In 2024, DFS Medical Supply collected rent revenue for 2025 tenant occupancy. For income tax reporting, the rent is taxed when collected. For financial statement reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy the rental property. The deferred portion of the rent collected in 2024 amounted to $340,000 at December 31, 2024. DFS had no temporary differences at the beginning of the year.
Question: Assuming an income tax rate of 25% and 2024 income tax payable of $990,000, prepare the journal entry to record income taxes for 2024.