CurrentCullumber Corporation began operations in 2025 and reported pretax financial income of $226,000 for the year. Cullumber's taxdepreciation exceeded its book depreciation by $39,000. Cullumber's tax rate for 2025 and years thereafter is 30%. Assume thisonly difference between Cullumber's pretax financial income and taxable income.Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (List all debit enbefore credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.entry is required, select "No Entry" for the account titles and enter O for the amounts.)Account Titles and ExplanationDebitCreditShow how the deferred tax liability will be classified on the December 31, 2025, balance sheet.Deferred tax liability should be classified as aon the December 31, 2025, balance sheet.

Deferred tax which is described as the tax difference between the current tax and any differential…

Cullumber Corporation began operations in 2025 and reported pretax financial income of $226,000 for depreciation exceeded its book depreciation by $39,000. Cullumber's tax rate for 2025 and years thereafter is 30%. Assume this only difference between Cullumber's pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (List all debit er before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Cullumber Corporation began operations in 2025 and reported pretax financial income of $226,000 for depreciation exceeded its book depreciation by $39,000. Cullumber's tax rate for 2025 and years thereafter is 30%. Assume this only difference between Cullumber's pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (List all debit er before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually entry is required, select "No Entry" for the account titles and enter O for the amounts.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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