Current Attempt in ProgressThe following information is available for Bramble Corporation for 2024 (its first year of operations).1.Excess of tax depreciation over book depreciation, $42,400. This $42,400 difference will reverse equally over the years2025-2028.2.Deferral, for book purposes, of $20,300 of rent received in advance. The rent will be recognized in 2025.3.Pretax financial income, $272,300.4.Tax rate for all years, 30%.(a)Your answer is correct.Compute taxable income for 2024.Taxable income $250200Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (List all debitentries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry isrequired, select "No Entry" for the account titles and enter 0 for the amounts.)Account Titles and ExplanationIncome Tax ExpenseDeferred Tax AssetDeferred Tax LiabilityIncome Tax PayableDebit794106090Credit1044075060

Taxable income:Taxable income is the income on which the tax is paid. Taxable includes both earned…

The following information is available for Bramble Corporation for 2024 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $42,400. This $42,400 difference will reverse equally over the years 2025-2028. 2. Deferral, for book purposes, of $20,300 of rent received in advance. The rent will be recognized in 2025. 3. Pretax financial income, $272,300. 4. Tax rate for all years, 30%.

The following information is available for Bramble Corporation for 2024 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $42,400. This $42,400 difference will reverse equally over the years 2025-2028. 2. Deferral, for book purposes, of $20,300 of rent received in advance. The rent will be recognized in 2025. 3. Pretax financial income, $272,300. 4. Tax rate for all years, 30%.

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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