The 2013 income tax provision with the information


Dreamco has a financial statement income of $90 million in 2013. In this $90 million are $1 million in Meals/Entertainment expense (50% excluded for tax purposes), $4 million in life insurance proceeds from a President passing in 2013, and municipal bond interest of $2 million. Straight-line depreciation is used for financial statements, but MACRS on the tax return that has created a temporary negative difference of $10 million on the tax return for the current year but will reverse in the next 3 years. Net operating losses of $60 million that are expected to be used in the next 10 years at the end of 2013. Deferred tax asset balance of $30 million at the 12/31/12 and no deferred tax liability. The tax rate is 40% and isn't expected to change.

Provide the journal entry for the 2013 income tax provision with the information given.

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Accounting Basics: The 2013 income tax provision with the information
Reference No:- TGS0678794

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