Answer:
I don't know
Explanation:
Hopkins Co. at the end of 2022, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:
Pretax financial income $750,000
Estimated litigation expense $1,000,000
Extra depreciation for taxes (1,500,000)
Taxable income $250,000
The estimated litigation expense of $1,000,000 will be deductible in 2023 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $500,000 in each of the next three years. The income tax rate is 30% for all years.
Required:
Make a journal entry to record the income taxes at the end of 2021