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PROBLEM 14-6 Quarterly Income Tax Entries LO 9 Actual quarterly earnings...

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Accounting

PROBLEM 14-6
Quarterly Income Tax Entries LO 9
Actual quarterly earnings and quarterly estimates of annual earnings for Sloan Company for the year ended December 31,2019 are as follows:
Quarter
Actual Quarterly Earnings
Quarterly Estimates of Annual Earnings
1
$95,000
$400,000
2
85,000
370,000
3
92,000
370,000
4
96,000
N/A
The combined state and federal tax rate for 2019 is 30%. Sloan Company estimated it would have permanent differences between accounting income and taxable income during 2019. Each quarters estimate of these annual differences is provided in the following table:
Estimated Permanent Differences
Estimate at End of Quarter
Penalty for Pollution
Dividend Exclusion
1
$14,000
$40,000
2
14,000
40,000
3
14,000
50,000
The actual amount of permanent differences for 2019 were environmental penalties, $14,000 dividend exclusion, $55,000.
Required:Prepare journal entries to record Sloan Companys 2019 quarterly income tax provisions.

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