At the end of 2013, its first year of operations, Slater Company reported a book value for its depreciable assets of $40,000 for financial reporting purposes and $33,000 for income tax purposes. Slater earned taxable income of $97,000 during 2013. The company is subject to a 30% income tax rate, and no change has been enacted for future years. The depreciation was the only temporary difference between taxable income and pretax financial income.

1. Prepare Slater's income tax journal entry at the end of 2013. If an amount box does not require an entry, leave it blank.

Income Tax Expense xxxxxx

Income Tax Payables xxxxxx

Deferred Tax Liability

Question

At the end of 2013, its first year of operations, Slater Company reported a book value for its depreciable assets of $40,000 for financial reporting purposes and $33,000 for income tax purposes. Slater earned taxable income of $97,000 during 2013. The company is subject to a 30% income tax rate, and no change has been enacted for future years. The depreciation was the only temporary difference between taxable income and pretax financial income.

1. Prepare Slater's income tax journal entry at the end of 2013. If an amount box does not require an entry, leave it blank.

Income Tax Expense xxxxxx

Income Tax Payables xxxxxx

Deferred Tax Liability

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At the end of 2013, its first year of operations, Slater Company reported a book value for its depreciable assets of $40,000 for financial reporting

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