The information that follows pertains to Julia Company: Temporary differences for the year

2018 are summarized below.

Expenses deducted in the tax return, but not included in the income statement:

      Depreciation $ 58,000 Prepaid expense $ 7,800  

Expenses reported in the income statement, but not deducted in the tax return:

      Warranty expense $ 8,800  

1. (b.) No temporary differences existed at the beginning of 2018.
2. (c.) Pretax accounting income was $64,800 and taxable income was $7,800 for 2018.
3. (d.) There were no permanent differences.
4. (e.) The tax rate is 40%.

Required:

Prepare the journal entry to record the tax provision for 2018. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field.)

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