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The Greene Company has net income before income tax expense of $300,000 in Year One. However,...

The Greene Company has net income before income tax expense of $300,000 in Year One. However, because of differences between U.S. GAAP and the tax laws, only 60 percent of this income is taxed in Year One (to be paid on March 15, Year Two). Another 30 percent will be taxed in Year Two and the final 10 percent will be taxed in Year Nine. Assume the effective tax rate is 25 percent. a. What adjusting entry is recorded at the end of Year One? b. What amount of net income should be reported by Greene Company for Year One?

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