. Prepare the journal entry(s) to record income taxes during the period. b.How much will income tax expense be shown in the income statement? c. What will be the balance sheet disclosure during the period regarding taxes?
At the end of the year, a deductible temporary difference of $40 million has been recognised due to the difference between the carrying amount of a liability account for estimated expenses and its tax base. Taxable income is $50 million. No temporary differences existed at the beginning of the year, and the tax rate is 35%.
Required:
a. Prepare the
b.How much will income tax expense be shown in the income statement?
c. What will be the
It has been given in the question that a deductible temporary difference has been recognized of the amount of $40 Million which has been due to the carrying amount of liability and its tax base.
The taxable income is $50 Million
Tax Rate = 35%
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