At the end of 2024, Lucretia McEvil Company has $180,000 of cumulative temporary differences that will result
Question:
At the end of 2024, Lucretia McEvil Company has $180,000 of cumulative temporary differences that will result in reporting the following future taxable amounts.
Tax rates enacted as of the beginning of 2023 are:
McEvil’s taxable income for 2024 is $320,000. Taxable income is expected in all future years.
Instructions
a. Prepare the journal entry for McEvil to record income taxes payable, deferred income taxes, and income tax expense for 2024, assuming that there were no deferred taxes at the end of 2023.
b. Prepare the journal entry for McEvil to record income taxes payable, deferred income taxes, and income tax expense for 2024, assuming that there was a balance of $22,000 in a Deferred Tax Liability account at the end of 2023.
Step by Step Answer:
a Income Tax Expense Income Taxes Payable Deferred Tax Liability Taxable income for 2024 Enacted tax ...View the full answer
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
