Taxable income Total Future deductible amounts Total Future taxable amounts Balance at beginning of year: Deferred tax asset Deferred tax liability The enacted tax rate is 40%. a. Income taxes payable b. Deferred tax asset balance c. Deferred tax asset change d. Deferred tax liability balance e. Deferred tax liability change f. Income tax expense Situation (Situational amounts are stated in thousands) Situation 2 Situation 3 $215 Situation 3 Situation 1 Situation 4 $85 15 0 2 0 1 2. For each situation, prepare the journal entry for taxes. Situation 1 Required: 1. For each situation (1-4), determine your responses for a. through f. and fill in the table appropriately: 2 0 15 0 2 $ 195 20 15 9 2 3 Situation 4 $260 20 30 4 0 4
Taxable income Total Future deductible amounts Total Future taxable amounts Balance at beginning of year: Deferred tax asset Deferred tax liability The enacted tax rate is 40%. a. Income taxes payable b. Deferred tax asset balance c. Deferred tax asset change d. Deferred tax liability balance e. Deferred tax liability change f. Income tax expense Situation (Situational amounts are stated in thousands) Situation 2 Situation 3 $215 Situation 3 Situation 1 Situation 4 $85 15 0 2 0 1 2. For each situation, prepare the journal entry for taxes. Situation 1 Required: 1. For each situation (1-4), determine your responses for a. through f. and fill in the table appropriately: 2 0 15 0 2 $ 195 20 15 9 2 3 Situation 4 $260 20 30 4 0 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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