The Tanner Corporation begins operations in 2006 and reports the following amounts of pretax financial income and taxable income for the years 2006 through 2010. The company has only one temporary difference, and only one originating or reversing difference occurs in any single year. The company is subject to a tax rate of 30% for all the years.Required1. Prepare the income tax journal entry for each year.2. What do you notice about the balance in the deferred taxes over the fiveyears?
The Tanner Corporation begins operations in 2006 and reports the