Preparing journal entries for income tax expense. The income tax note to the financial statements of Ingersoll-Rand
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Preparing journal entries for income tax expense. The income tax note to the financial statements of Ingersoll-Rand for three recent years shows the following (amounts in millions):
Assume that all deferred taxes relate to the use of accelerated depreciation for income tax purposes and the straight-line method for financial reporting.
a. Give the journal entry to record income tax expense for Year 9, Year 10, and Year 11.
b. Describe the likely reasons for the pattern of currently payable and deferred income taxes for each of the three years.
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Related Book For
Financial Accounting An Introduction To Concepts Methods And Uses
ISBN: 9780324183511
10th Edition
Authors: Clyde P. Stickney, Roman L. Weil
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