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Question : Continue with the results of Problem 22.


Continue with the results of Problem 22. Prepare the GAAP journal entries for Phillips's year 1 income tax expense.

Data from Problem 22:

Phillips, Inc., a cash basis C corporation, completes $100,000 in sales for year 1, but only $75,000 of this amount is collected during year 1. The remaining $25,000 from these sales is collected promptly during the first quarter of year 2. The applicable income tax rate for year 1 and thereafter is 30%. Compute Phillips's year 1 current and deferred income tax expense.