Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company has a temporary difference due to depreciation. For fiscal year 2012, its Income Tax Expense is $15,000 and its Taxable Income is $100,000.

A company has a temporary difference due to depreciation. For fiscal year 2012, its Income Tax Expense is $15,000 and its Taxable Income is $100,000. The statutory tax rate is 35%

What is the correct journal entry for recording 2012 Income Tax Expense and Income Tax Payable?

Dr. Income Tax Expense 15,000 Dr. Deferred Tax Liabilities 85,000 Cr. Income Tax Payable 100,000

Dr. Income Tax Expense 15,000 Dr. Deferred Tax Assets 20,000 Cr. Income Tax Payable 35,000

Dr. Income Tax Expense 15,000 Dr. Deferred Tax Liabilities 20,000 Cr. Income Tax Payable 35,000

Dr. Income Tax Expense 15,000 Cr. Income Tax Payable 15,000

Dr. Income Tax Expense 15,000 Dr. Deferred Tax Assets 85,000 Cr. Income Tax Payable 100,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Statement Fraud Casebook Baking The Ledgers And Cooking The Books

Authors: Joseph T. Wells

1st Edition

0470934417, 978-0470934418

More Books

Students also viewed these Accounting questions