Problem 16-135 At the end of the prior year, Doubtful Inc. had a deferred tax asset of $23,500,000 attributable to its only timing difference, a temporary difference of $57,000,0000 in a liability for estimated expenses. At that time, a valuation allowance of $4,630,000 was established. At the end of the current year, the temporary difference is $52,000,000, and Doubtful determines that the balance in the valuation account should now be $5,000,000. Taxable income is $15,700,000 and the tax rate is 40% for all years. Required: Prepare journal entries to record Doubtful's income tax expense for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 > Record the income taxes. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal
Problem 16-135 At the end of the prior year, Doubtful Inc. had a deferred tax asset of $23,500,000 attributable to its only timing difference, a temporary difference of $57,000,0000 in a liability for estimated expenses. At that time, a valuation allowance of $4,630,000 was established. At the end of the current year, the temporary difference is $52,000,000, and Doubtful determines that the balance in the valuation account should now be $5,000,000. Taxable income is $15,700,000 and the tax rate is 40% for all years. Required: Prepare journal entries to record Doubtful's income tax expense for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 > Record the income taxes. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Problem 16-135
11
At the end of the prior year, Doubtful Inc. had a deferred tax asset of $23,500,000 attributable to its only timing difference, a
temporary difference of $57,000,000 in a liability for estimated expenses. At that time, a valuation allowance of $4,630,000 was
established. At the end of the current year, the temporary difference is $52,000,000, and Doubtful determines that the balance in the
valuation account should now be $5,000,000. Taxable income is $15,700,000 and the tax rate is 40% for all years.
polnts
Required:
Prepare journal entries to record Doubtful's income tax expense for the current year. (If no entry is required for a transaction/event,
select "No journal entry required" in the first account field.)
X 01:59:09
View transaction list
Journal entry worksheet
1
2
>
Record the income taxes.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7e4aac61-8b54-44fe-ba9f-2f83a82b72eb%2Fd72c4664-57cc-42b2-828a-b2ebd705e390%2Fv7j5ve2_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 16-135
11
At the end of the prior year, Doubtful Inc. had a deferred tax asset of $23,500,000 attributable to its only timing difference, a
temporary difference of $57,000,000 in a liability for estimated expenses. At that time, a valuation allowance of $4,630,000 was
established. At the end of the current year, the temporary difference is $52,000,000, and Doubtful determines that the balance in the
valuation account should now be $5,000,000. Taxable income is $15,700,000 and the tax rate is 40% for all years.
polnts
Required:
Prepare journal entries to record Doubtful's income tax expense for the current year. (If no entry is required for a transaction/event,
select "No journal entry required" in the first account field.)
X 01:59:09
View transaction list
Journal entry worksheet
1
2
>
Record the income taxes.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
Record entry
Clear entry
View general journal
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