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You are the accountant for Auxerre, and you have to prepare the journal for income...

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Accounting

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You are the accountant for Auxerre, and you have to prepare the journal for income taxes. You have gathered the following information for 2020: 1. Deferred tax liability, January 1, 2020, $40,000. 2. Deferred tax asset, January 1, 2020, $0. 3. Taxable income for 2020, $127,000. 4. Cumulative temporary difference on December 31, 2020, giving rise to future taxable amounts, $220,000. 5. Cumulative temporary difference on December 31, 2020, giving rise to future deductible amounts, $35,000. 6. There is one permanent difference between taxable and pretax financial income due to a $5,000 fine imposed by OSHA. 7. The tax rate is 40% for all years. 8. The company is expected to operate profitably in the future. Prepare the journal entry to record income taxes for 2012

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