5. (6 points) Mackey Industries has pretax accounting income of $32 million for the year...
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5. (6 points) Mackey Industries has pretax accounting income of $32 million for the year ended December 31, 2021. The tax rate is 25%. The only difference between accounting income and taxable income relates to an operating lease in which Mackey is the lessee. The inception of the lease was December 28, 2021. An $8 million advance rent payment at the inception of the lease is tax-deductible in 2021 but, for financial reporting purposes, represents prepaid rent expense to be recognized equally over the four-year lease term. Prepare the appropriate journal entry to record Mackey's income taxes for 2021. Debit Account Credit Account Debit Amount Credit Amount
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