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The information that follows pertains to Richards Refrigeration, Inc.:
a. At December 31, 2011, temporary differences existed between the financial statement carrying amounts and the tax bases of the following:
b. No temporary differences existed at the beginning of 2011.
c. Pretax accounting income was $200 million and taxable income was $145 million for the year ended December 31, 2011. The tax rate is 40%.
Required:
1. Determine the amounts necessary to record income taxes for 2011 and prepare the appropriate journal entry.
2. What is the 2011 net income?
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