Deferred tax liability : Some business activities may create a dissimilarity between the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr. J is a car dealer who sold a car on installment. The actual sale happened in the current year, but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account. To determine the deferred tax liability for the year 2017 and pass the journal entry for the deferred tax liability. Given information: Deferred tax liability for the year 2017 is $680,000. Future taxable income is $2,000,000. Tax rate for the year 2017 is 34%. Tax rate for the year 2018 is 40%.

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Answer 1

Question

Chapter 19, Problem 11BE

To determine

Deferred tax liability: Some business activities may create a dissimilarity between the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr. J is a car dealer who sold a car on installment. The actual sale happened in the current year, but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

To determine the deferred tax liability for the year 2017 and pass the journal entry for the deferred tax liability.

Given information: Deferred tax liability for the year 2017 is $680,000.

Future taxable income is $2,000,000.

Tax rate for the year 2017 is 34%.

Tax rate for the year 2018 is 40%.

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Answer 2

Question

Chapter 19, Problem 11BE

To determine

Deferred tax liability: Some business activities may create a dissimilarity between the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr. J is a car dealer who sold a car on installment. The actual sale happened in the current year, but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

To determine the deferred tax liability for the year 2017 and pass the journal entry for the deferred tax liability.

Given information: Deferred tax liability for the year 2017 is $680,000.

Future taxable income is $2,000,000.

Tax rate for the year 2017 is 34%.

Tax rate for the year 2018 is 40%.

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Answer 3

Question

Chapter 19, Problem 11BE

To determine

Deferred tax liability: Some business activities may create a dissimilarity between the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr. J is a car dealer who sold a car on installment. The actual sale happened in the current year, but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

To determine the deferred tax liability for the year 2017 and pass the journal entry for the deferred tax liability.

Given information: Deferred tax liability for the year 2017 is $680,000.

Future taxable income is $2,000,000.

Tax rate for the year 2017 is 34%.

Tax rate for the year 2018 is 40%.

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Answer 4

Question

Chapter 19, Problem 11BE

To determine

Deferred tax liability: Some business activities may create a dissimilarity between the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr. J is a car dealer who sold a car on installment. The actual sale happened in the current year, but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

To determine the deferred tax liability for the year 2017 and pass the journal entry for the deferred tax liability.

Given information: Deferred tax liability for the year 2017 is $680,000.

Future taxable income is $2,000,000.

Tax rate for the year 2017 is 34%.

Tax rate for the year 2018 is 40%.

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Answer 5

Chapter 19, Problem 11BE

To determine

Deferred tax liability: Some business activities may create a dissimilarity between the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr. J is a car dealer who sold a car on installment. The actual sale happened in the current year, but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

To determine the deferred tax liability for the year 2017 and pass the journal entry for the deferred tax liability.

Given information: Deferred tax liability for the year 2017 is $680,000.

Future taxable income is $2,000,000.

Tax rate for the year 2017 is 34%.

Tax rate for the year 2018 is 40%.

Answer 6

Chapter 19, Problem 11BE

To determine

Deferred tax liability: Some business activities may create a dissimilarity between the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr. J is a car dealer who sold a car on installment. The actual sale happened in the current year, but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

To determine the deferred tax liability for the year 2017 and pass the journal entry for the deferred tax liability.

Given information: Deferred tax liability for the year 2017 is $680,000.

Future taxable income is $2,000,000.

Tax rate for the year 2017 is 34%.

Tax rate for the year 2018 is 40%.

Answer 7

Chapter 19, Problem 11BE

To determine

Deferred tax liability: Some business activities may create a dissimilarity between the amount recorded in the books and the taxable income. These differences create deferred tax liability. For example, Mr. J is a car dealer who sold a car on installment. The actual sale happened in the current year, but the benefits are receivable in the future years. This creates a difference in the books of accounts and the taxable account.

To determine the deferred tax liability for the year 2017 and pass the journal entry for the deferred tax liability.

Given information: Deferred tax liability for the year 2017 is $680,000.

Future taxable income is $2,000,000.

Tax rate for the year 2017 is 34%.

Tax rate for the year 2018 is 40%.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 19 - Prob. 1Q Ch. 19 - Prob. 2Q Ch. 19 - Prob. 3Q Ch. 19 - Prob. 4Q Ch. 19 - Prob. 5Q Ch. 19 - Prob. 6Q Ch. 19 - Prob. 7Q Ch. 19 - Prob. 8Q Ch. 19 - Prob. 9Q Ch. 19 - Prob. 10Q

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