Question Details

(Solved) (Latest ver. Aug 2020) - Journal Entry to Record Income Tax

Brief item decscription


Item details:

Question:

(Two Temporary Differences, One Rate, Beginning Deferred Taxes) The following facts
related to Krung The Corporation.

1) Deferred tax liability, January 1, 2007, $40,000
2) Deferred tax asset, January 1, 2007, $0
3) Taxable income for 2007, $95,000
4) Pretax financial income for 2007, $200,000
5) Cumulative temporary difference at December 31, 2007, giving rise to future taxable
amounts, $240,000
6) Cumulative temporary difference at Dec 31, 2007, giving rise to future deductible'
amounts, $35,000
7) Tax rate for all years 40%
8) The company is expected to operate profitable in the future.

Instructions
a)Compute income tax payable

b)Prepare journal entry to record income tax expense deferred income taxes
income taxes, and income taxes payable for 2007

c)Prepare the income tax expense section of the income statement for 2007,
beginning with the line "Income before income taxes."

 







About this question:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 16, 2020

PRICE: $11.5

Solution~00010501.zip (18.37 KB)

Buy this answer for only: $11.5

Pay using PayPal (No PayPal account Required) or your credit card. All your purchases are securely protected by PayPal.
SiteLock

Need a similar solution fast, written anew from scratch? Place your own custom order

We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

Order Now