In 2016, Ryan Management collected rent revenue for 2017 tenantoccupancy. For financial reporting, the rent is recorded asdeferred revenue and then recognized as income in the periodtenants occupy rental property. But for income tax reporting it istaxed when collected. The deferred portion of the rent collected in2016 was $80 million. Taxable income is $260 million. No temporarydifferences existed at the beginning of the year, and the tax rateis 40%. Suppose the deferred portion of the rent collected was $70million at the end of 2017. Taxable income is $280 million.
Prepare the appropriate journal entry to record income taxes.(If no entry is required for a particular event, select "Nojournal entry required" in the first account field. Enter youranswers in millions (i.e., 10,000,000 should be entered as10).)
In 2016, Ryan Management collected rent revenue for 2017 tenantoccupancy. For financial reporting, the rent is recorded asdeferred revenue and then recognized as income in the periodtenants occupy rental property. But for income tax reporting it istaxed when collected. The deferred portion of the rent collected in2016 was $80 million. Taxable income is $260 million. No temporarydifferences existed at the beginning of the year, and the tax rateis 40%. Suppose the deferred portion of the rent collected was $70million at the end of 2017. Taxable income is $280 million. |
Prepare the appropriate journal entry to record income taxes.(If no entry is required for a particular event, select "Nojournal entry required" in the first account field. Enter youranswers in millions (i.e., 10,000,000 should be entered as10).) |