Hurricane Ltd reports financial income of $100,000 for 2019. The following items cause taxable income to be different than pre-tax financial income: 1. Depreciation on the tax return is greater than depreciation on the income statement by $26,000 2. Rent collected on the tax return is greater than rent earned on the income statement by $17,000 3. Fines for pollution appear as an expense of $1,000 on the income statement. Hurricane Ltd tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2019. Required: According to IAS 12 Income Taxes 1. Prepare the journal entry to record income tax expense, deferred taxes and income taxes payable for 2019. Clearly label them as deferred tax asset or liability.
Hurricane Ltd reports financial income of $100,000 for 2019. The following items cause taxable income to be
different than pre-tax financial income:
1.
2. Rent collected on the tax return is greater than rent earned on the income statement by $17,000
3. Fines for pollution appear as an expense of $1,000 on the income statement.
Hurricane Ltd tax rate is 30% for all years, and the company expects to report taxable income in all
future years. There are no
Required: According to IAS 12 Income Taxes
1. Prepare the journal entry to record income tax expense, deferred taxes and income taxes payable for
2019. Clearly label them as
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