Miner Company had pretax accounting income for 2021, its first year of operations, of $758,000. In calculating that income, Miner subtracted a $15,000 fine paid for violating a law. Depreciation on the tax return for the year was $56,000, but book depreciation was only $42.000. Deferred revenues, amounts collected and taxable during 2021 but not yet recognized as revenues, totaled $23,000. The 2021 tax rate is 25%, but the tax rate for all years after 2021 has already been enacted to increase to 30%. Make the journal entry to record taxes for 2021. If you have both deferred tax assets and deferred tax liabilities, record them separately. Show your work.
Miner Company had pretax accounting income for 2021, its first year of operations, of $758,000. In calculating that income, Miner subtracted a $15,000 fine paid for violating a law. Depreciation on the tax return for the year was $56,000, but book depreciation was only $42.000. Deferred revenues, amounts collected and taxable during 2021 but not yet recognized as revenues, totaled $23,000. The 2021 tax rate is 25%, but the tax rate for all years after 2021 has already been enacted to increase to 30%. Make the journal entry to record taxes for 2021. If you have both deferred tax assets and deferred tax liabilities, record them separately. Show your work.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kk.387.
Transcribed Image Text:Miner Company had pretax accounting income for 2021, its first year of operations, of $758,000. In calculating that income, Miner
subtracted a $15,000 fine paid for violating a law. Depreciation on the tax return for the year was $56,000, but book depreciation
was only $42.000. Deferred revenues, amounts collected and taxable during 2021 but not yet recognized as revenues, totaled
$23,000. The 2021 tax rate is 25%, but the tax rate for all years after 2021 has already been enacted to increase to 30%. Make the
journal entry to record taxes for 2021. If you have both deferred tax assets and deferred tax liabilities, record them separately.
Show your work.
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