(Solution) - Preparing journal entries for income tax expense An athletic sh -(2025 Original AI-Free Solution)

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Preparing journal entries for income tax expense. An athletic shoe company reports the following information about its income taxes for three recent years (amounts in millions):

(a) Give the journal entries to record income tax expense for 2006, 2007, 2008.
(b) Describe the likely reason for the pattern of taxes currently payable and deferred for each year. Assume that deferred taxes relate primarily to depreciation temporary differences. The effective tax rate was relatively stable for the three years.