Question
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 $10,000.
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 $10,000. 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 Cr. Deferred Tax Liabilities 11,500 Cr. Income Tax Payable 3,500
Dr. Income Tax Expense 15,000 Dr. Deferred Tax Liabilities 85,000 Cr. Income Tax Payable 100,000
Dr. Income Tax Expense 15,000 Cr. Deferred Tax Assets 11,500 Cr. Income Tax Payable 3,500
Dr. Income Tax Expense 15,000 Dr. Deferred Tax Assets 85,000 Cr. Income Tax Payable 100,000
Dr. Income Tax Expense 15,000 Cr. Income Tax Payable 15,000
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Front Office Operations And Auditing Workbook
Authors: Patrick J. Moreo, Gail Sammons, Jeff Beck
2nd Edition
0130324930, 978-0130324931
