A. J. Johnson & Co record certain revenues on its books in 2015 and 2016 of $15,400 and $16,600, respectively. However, such revenues were not subject to income taxation until 2017. the company records reveal pretax financial income and taxable income for the three-year period as follows:
Financial Income Taxable Income
2015 $44,200 28,800
2016 38,200 21,600
2017 21,100 53,100
Assume that Johnson’s tax rate is 40% for all periods
Prepare the journal entries necessary at the end of each year to record income taxes.
