5. E19-1 (One Temporary Difference, Future Taxable Amounts, One Rate, No Beginning Deferred Taxes) Starfleet Corporation has one temporary difference at the end of 2012 that will reverse and cause taxable amounts of \\( \\$ 55,000 \\) in 2013, \\$60,000 in 2014, and \\$75,000 in 2015. Starfleet's pretax financial income for 2012 is \\( \\$ 400,000 \\), and the tax rate is \30 for all years. There are no deferred taxes at the beginning of 2012 . Instructions (a) Compute taxable income and income taxes payable for 2012. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxe payable for 2012. (c) Prepare the income tax expense section of the income statement for 2012, beginning with the lin \"Income before income taxes.\" 2. E19-2 (Two Differences, No Beginning Deferred Taxes, Tracked through 2 Years) The following infor mation is available for McKee Corporation for 2012. 1. Excess of tax depreciation over book depreciation, \\( \\$ 40,000 \\). This \\( \\$ 40,000 \\) difference will rever: equally over the years 2013-2016. 2. Deferral, for book purposes, of \\( \\$ 25,000 \\) of rent received in advance. The rent will be earned in 2013 3. Pretax financial income, \\( \\$ 350,000 \\). 4. Tax rate for all years, \40. Instructions (a) Compute taxable income for 2012. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income ta payable for 2012. (c) Prepare the journal entry to record income tax expense, deferred income taxes, and income ta payable for 2013, assuming taxable income of \\( \\$ 325,000 \\). 5. E19-1 (One Temporary Difference, Future Taxable Amounts, One Rate, No Beginning Deferred Taxes) Starfleet Corporation has one temporary difference at the end of 2012 that will reverse and cause taxable amounts of \\( \\$ 55,000 \\) in 2013, \\$60,000 in 2014, and \\$75,000 in 2015. Starfleet's pretax financial income for 2012 is \\( \\$ 400,000 \\), and the tax rate is \30 for all years. There are no deferred taxes at the beginning of 2012 . Instructions (a) Compute taxable income and income taxes payable for 2012. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxe payable for 2012. (c) Prepare the income tax expense section of the income statement for 2012, beginning with the lin \"Income before income taxes.\" 2. E19-2 (Two Differences, No Beginning Deferred Taxes, Tracked through 2 Years) The following infor mation is available for McKee Corporation for 2012. 1. Excess of tax depreciation over book depreciation, \\( \\$ 40,000 \\). This \\( \\$ 40,000 \\) difference will rever: equally over the years 2013-2016. 2. Deferral, for book purposes, of \\( \\$ 25,000 \\) of rent received in advance. The rent will be earned in 2013 3. Pretax financial income, \\( \\$ 350,000 \\). 4. Tax rate for all years, \40. Instructions (a) Compute taxable income for 2012. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income ta payable for 2012. (c) Prepare the journal entry to record income tax expense, deferred income taxes, and income ta payable for 2013, assuming taxable income of \\( \\$ 325,000 \\)
