$12$ Exam#$3.$pdf

$1$ of $3-$ Edited

Pretax Income $=$$$55,000$

$2.$ Assume the information from problem $1,$ and a tax rate of $40\%.$ Calculate income tax expense and income tax payable.

Income Tax Payable $=$ Income Tax Expense $=$$$22,000$

$3.$ Assuming the information from problems $1$ and $2.$ Will this Company have a deferred tax liability or a deferred tax asset? What is the amount of the deferred tax liability$/$asset$?$

Deferred Tax Liability $=$$$10,000$

$4.$ Using the information from problems $1-3,$ complete the journal entry to record income tax expense, income tax payable, and deferred tax liability$/$asset$.$

$\backslash$table$[[$Account Title,Debit,Credit$],[,,],[,,],[,,]]$