Taxable income is 180 million no temporary differences


1. In 2011, Ryan Management collected rent revenue for 2012 tenant occupancy. For financial reporting, the rent is recognized as income in the period earned, but for income tax reporting it is taxed when collected. The unearned portion of the rent collected in 2011 was $50 million. Taxable income is $180 million. No temporary differences existed at the beginning of the year, and the tax rate is 40%. Prepare the appropriate journal entry to record income taxes.

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Accounting Basics: Taxable income is 180 million no temporary differences
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