During 2014, Yale Heights Corp.s income statement reported income of $ 417,000 before tax. The companys income

Question:

During 2014, Yale Heights Corp.’s income statement reported income of $ 417,000 before tax. The company’s income tax return filed with the IRS showed taxable income of $ 320,000. During 2014, Yale Heights was subject to an income tax rate of 30%.

Requirements
1. Journalize Yale Heights’ income taxes for 2014.
2. How much income tax did Yale Heights have to pay for the year 2014?
3. At the beginning of 2014, Yale Heights’ balance of Deferred Tax Liability was $ 23,700. How much Deferred Tax Liability did Yale Heights report on its at December 31, 2014?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...