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Johnson company acquired an asset for $100 million in 2012. The asset is depreciated for...

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Accounting

Johnson company acquired an asset for $100 million in 2012. The asset is depreciated for financial reporting purposes over four years on a straight line basis (no residual value). For tax purposes the asset's cost is depreciated by MACRS. The enacted tax rate is 30%. Amounts for the four year useful life are as follows: 2012 2013 2014 2015 Accounting income 250 260 290 300 Depreciation on the income statement 25 25 25 25 Depreciation on the tax return 35 32 22 11 Taxable Income 240 253 293 314 Give the journal entries each year for the income taxes. Show all calculations clearly

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