Homework Answers
Solution:
| Journal Entry | ||
| Particulars | Debit | Credit |
| Equipment | $48,000 | |
| Accumulated depreciation ($48000*2/5) | $19,200 | |
| Retained earnings ($48000*3/5*70%) | $20,160 | |
| Deferred tax liability ($48000*3/5*30%) | $8,640 | |
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