The following information is available for Oriole Inc. for 2024: Excess of tax depreciation over book depreciation, $79,600. This $79,600 difference will reverse equally over the next 4 years. 1. 2. 3. 4. Deferral, for book purposes, of $23,100 of subscription income received in advance. The subscription income will be earned in 2025. Pretax financial income, $154,300. Tax rate for all years, 20%.
The following information is available for Oriole Inc. for 2024: Excess of tax depreciation over book depreciation, $79,600. This $79,600 difference will reverse equally over the next 4 years. 1. 2. 3. 4. Deferral, for book purposes, of $23,100 of subscription income received in advance. The subscription income will be earned in 2025. Pretax financial income, $154,300. Tax rate for all years, 20%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following information is available for Oriole Inc. for 2024:
Excess of tax depreciation over book depreciation, $79,600. This $79,600 difference will reverse equally over the next 4
years.
1.
2.
3.
4.
(a)
Deferral, for book purposes, of $23,100 of subscription income received in advance. The subscription income will be earned
in 2025.
Pretax financial income, $154,300.
Tax rate for all years, 20%.
Your answer is correct.
Compute taxable income for 2024.
Taxable income
97800
Transcribed Image Text:Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (Credit
account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select
"No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)
Account Titles and Explanation
Income Tax Expense
Deferred Tax Asset
Income Tax Payable
Deferred Tax Liability
Show Transcribed Text
Debit
Account Titles and Explanation
30860
Debit
4620
Credit
19560
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025, assuming
taxable income of $243,200. (Credit account titles are automatically indented when amount is entered. Do not indent
manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit
entries before credit entries.)
15920
Credit
AUD
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