PT. A in the year 2020 reported an accounting profit before tax of IDR 800.000.000.000. The following information is related to the year 2020:The entity donated IDR 40.000.000.000 to the surrounding communityPT A has interest income of IDR 100.000.000.000 which is subject to final tax of 20%.PT A purchased a fixed asset of IDR 200.000.0000, which is depreciated for 4 year for book purposes while for tax purposes is depreciated in 8 years (straight line with no residual value).PT A made a provision for uncollectible account receivable of IDR 10.000.000.000 which is not deductible for tax purposesRequired:Prepare a schedule of the deferred tax (asset) and liability.assume there is no beginning deferred tax asset or liability. Compute the net deferred tax expense (benefit).Prepare the journal entry to record income tax expense, deferred taxes, and the income taxes payable for 2020

Deferred tax assets and deferred tax liabilities can be defined as a balance sheet items which…

Answered: PT. A in the year 2020 reported an…

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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PT. A in the year 2020 reported an accounting profit before tax of IDR 800.000.000.000. The following information is related to the year 2020:

The entity donated IDR 40.000.000.000 to the surrounding community
PT A has interest income of IDR 100.000.000.000 which is subject to final tax of 20%.
PT A purchased a fixed asset of IDR 200.000.0000, which is depreciated for 4 year for book purposes while for tax purposes is depreciated in 8 years (straight line with no residual value).
PT A made a provision for uncollectible account receivable of IDR 10.000.000.000 which is not deductible for tax purposes

Required:

Prepare a schedule of the deferred tax (asset) and liability.
assume there is no beginning deferred tax asset or liability. Compute the net deferred tax expense (benefit).
Prepare the journal entry to record income tax expense, deferred taxes, and the income taxes payable for 2020

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