MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting
MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting
12th Edition
ISBN: 9780134727677
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Chapter 4, Problem 4.16AE
To determine

To mention: Whether the internal control procedures are strong or weak, with reason

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Nadal Inc. has two temporary differences at the end of 2013. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Nadal's accounting department has developed a schedule of future taxable and deductible amounts related to these temporary differences as follows. 2014 Taxable amounts Deductible amounts 2015 2016 2017 $37,000 $53,000 $ 65,500 $89,300 (17,500) (20,800) $37,000 $35,600 $44,700 $ 89,300 As of the beginning of 2013, the enacted tax rate is 35% for 2013 and 2014, and 39% for 2015-2018. At the beginning of 2013, the company had no deferred income taxes on its balance sheet. Taxable income for 2013 is $519,200. Taxable income is expected in all future years. Prepare the journal entry to record income tax expense, deferred income taxes, and taxes payable for 2013.

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MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting

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