1. Calculate Deferred Tax Asset

Raymond Corp. reported pretax financial income of $600,000 for the year. Raymond also received cash in advance from rental properties for $28,000. Raymonds tax rate is 40%. Calculate the deferred tax asset.

2. Make journal entry with income statement info.

With the following information, create the journal entry for tax expense for 2017.

Income before income taxes.............................................................. $400,000

Income tax expenses

Current............................................................................................... $120,000

Deferred.............................................................................................. 15,000

............................................................................................................. 135,000

Net income.......................................................................................... $265,000