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Jenkins Corporation began operations on 1/1/20. On 12/31/20,Jenkins has pretax accounting income of $605,000 and...

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Accounting

Jenkins Corporation began operations on 1/1/20. On 12/31/20,Jenkins has pretax accounting income of $605,000 and taxable income of $525,000. The difference is due to the following:

Jenkins uses a different method of depreciation for tax purposes than accounting, allowing additional depreciation of $110,000 to be deducted in computing taxable income.

Estimated warranty costs of $80,000 were deducted in computing accounting income. Actual expenditures for warranties in 2020 were $35,000, and the remainder

will be deductible for tax purposes in future years.

Jenkins earned $15,000 interest on tax-free municipal bonds.

Jenkins has enacted tax rates of 21% for 2020 and 23% for future years. Prepare the 2020 tax journal entry needed by Jenkins.

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