Calculating Deferred Tax Balance Evergreen Company's reconciliation between pretax GAAP income and taxable income follows for the year. Pretax GAAP income $240,000 (48,000). Depreciation adjustment Permanent difference 1,500 $193,500 Taxable income The company had one temporary difference due to the GAAP basis of equipment exceeding the tax basis of equipment. Record the income tax journal entry for the year, assuming a tax rate of 25%. Assume that the January 1 deferred tax liability balance was $6,000. • Note: Round amounts to the nearest whole dollar. Date Dec. 31 Account Name Income Tax Expense Deferred Tax Liability Income Tax Payable To record income tax expense. > > > Dr. ooo 0 0 Cr. 0x 11,625 x 48,375 ✔
Calculating Deferred Tax Balance Evergreen Company's reconciliation between pretax GAAP income and taxable income follows for the year. Pretax GAAP income $240,000 (48,000). Depreciation adjustment Permanent difference 1,500 $193,500 Taxable income The company had one temporary difference due to the GAAP basis of equipment exceeding the tax basis of equipment. Record the income tax journal entry for the year, assuming a tax rate of 25%. Assume that the January 1 deferred tax liability balance was $6,000. • Note: Round amounts to the nearest whole dollar. Date Dec. 31 Account Name Income Tax Expense Deferred Tax Liability Income Tax Payable To record income tax expense. > > > Dr. ooo 0 0 Cr. 0x 11,625 x 48,375 ✔
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 12P: Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax...
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