The information below pertains to Mondavi Corporation: (a.) For the current year...
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Accounting
The information below pertains to Mondavi Corporation:
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(a.) For the current year temporary differences existed between the financial statement carrying amounts and the tax basis of the following:
| Carrying Amount | Tax Basis | Future Taxable or (Deductible) Amount | |||||||
| Buildings and equipment | $ | 65,000,000 | $ | 49,500,000 | $ | 15,500,000 | |||
| Prepaid insurance | 1,500,000 | 0 | 1,500,000 | ||||||
| Liability-loss contingency | 10,500,000 | 0 | (10,500,000 | ) | |||||
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(b.) No temporary differences existed at the beginning of the year.
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(c.) Pretax accounting income was $350,000,000 and taxable income was $125,000,000 for the year and the tax rate is 35%.
Required: Prepare one journal entry to record the tax provision for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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