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Brief Exercise 16-9 (modified): Differences between financial statement and taxable income were as follows: The...

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Accounting

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Brief Exercise 16-9 (modified): Differences between financial statement and taxable income were as follows: The enacted tax rate is 25%. Prepare the year's tax entry to find tax expense. What is net income? Brief Exercise 16-3 (modified): On January 1, 2021, Milo Manufacturing purchased equipment costing $1,000,000. The equipment has a 10-year useful life and no residual value. Milo uses straight-line depreciation for financial statement reporting and is able to deduct 100% of the cost of the equipment in the year the equipment is purchased for tax purposes. Pretax accounting income in 2021 was $9,500,000. Pretax accounting income in 2022 was $9,900,000. The tax rate is 25%. 1. Prepare the journal entry to record income taxes for 2021. 2. Prepare the journal entry to record income taxes for 2022

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