Tazmania Inc Had Pretax Financial Income Of 154000 In 2008

Tazmania Inc. had pretax financial income of $154,000 in 2008. Included in the computation of that amount is insurance expense of $4,000 which is not deductible for tax purposes. In addition, depreciation for tax purposes exceeds accounting depreciation by $14,000. Prepare Tazmania’s journal entry to record 2008 taxes, assuming a tax rate of 45%.

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