(Solved): In 2024, Ryan Management collected rent revenue for 2025 tenant occupancy. For financial reporting, ...
In 2024, Ryan Management collected rent revenue for 2025 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2024. The deferred portion of the rent collected in 2024 was $126 million. Taxable income is $560 million in 2024. No temporary differences existed at the beginning of the year, and the tax rate is 25%.
Prepare the appropriate journal entry to record income taxes in 2024.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).
