Allowance to Reduce Deferred Tax Asset to Expected Realizable Value Benefit Due to Loss Carryback Benefit Due to Loss Carryforward Deferred Tax Asset Deferred Tax Liability Income Tax Expense Income Tax Payable Income Tax Refund Receivable No Entry

Exercise 19-10 (Part Level Submission) The following facts relate to Bramble Corporation. 1. Deferred tax liability, January 1, 2017, $66,000 2. Deferred tax asset, January 1, 2017, $22,000. 3. Taxable income for 2017, $115,500 4. Cumulative temporary difference at December 31, 2017, giving rise to future taxable amounts, $253,000 5. Cumulative temporary difference at December 31, 2017, giving rise to future deductible amounts, $104,500 6, Tax rate for all years, 40%. No permanent differences exist. 7. The company is expected to operate profitably in the future Your answer is correct. Compute the amount of pretax financial income for 2017 Pretax financial income 154000 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Deferred Tax Asset Debit Credit 19800 Income Tax Expense 61600 Deferred Tax Liability 35200 Income Tax Payable 46200 SEHOW LST OF CCUINTS SHOW SOLUITION ACCOUNTS LINK TO TEXT LINK TO TEXT Prepare the income tax expense section of the income statement for 2017, beginning with the line "Income before income taxes." (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Bramble Corporation Income Statement (Partial) For the Year Ended December 31, 2017 V Income before Income Taxes 154000 Income Tax Expense Current 46200 Deferred 15400 61600 92400 Net Income/ (Loss) | (d) Compute the effective tax rate for 2017. (Round answer to O decimal places, e.g. 25%) The effective tax rate