(Solution) - Synthia Manufacturing Corpora tion reported pre tax GAAP income of -(2025 Original AI-Free Solution)

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Synthia Manufacturing Corpora-tion reported pre- tax GAAP income of $ 3,250,000 for the current year.
? The change in the difference in the basis of plant assets is $ 430,000, where the book basis is higher than the tax basis.
? $ 12,000 of the Synthia?s pre- tax GAAP income is non- taxable income from municipal bonds.
? At the beginning of the current year, Synthia?s estimated warranty liability had a balance of $ 67,000. Actual repairs cost $ 55,000 and the company accrued an additional $ 72,000 for the current year.
? Synthia paid fines of $ 100,000 to the federal government for not complying with relevant regulations. Prepare the journal entry required to record the tax expense for the current year assuming a 40% income tax rate.