Jeonbuk Ltd. has two temporary differences between its income tax expense and income taxes payable. The information

Question:

Jeonbuk Ltd. has two temporary differences between its income tax expense and income taxes payable. The information is shown below.

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The income tax rate for all years is 40%.


Instructions

a. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2018, 2019, and 2020.

b. Assuming there were no temporary differences prior to 2018, indicate how deferred taxes will be reported on the 2020 statement of financial position. Jeonbuk's product warranty is for 12 months.

c. Prepare the income tax expense section of the income statement for 2020, beginning with the line "Pretax financial income."

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Related Book For  book-img-for-question

Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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