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At the end of 2016, Headland Company has $179,200 of cumulative temporary differences that will result in reporting the following future taxable amounts 2017 2018
At the end of 2016, Headland Company has $179,200 of cumulative temporary differences that will result in reporting the following future taxable amounts 2017 2018 2019 2020 $57,400 50,600 40,100 31,100 $179,200 Tax rates enacted as of the beginning of 2015 are: 40 % 30 % 25 % 2015 and 2016 2017 and 2018 2019 and later Headland's taxable income for 2016 is $328,900. Taxable income is expected in all future years (a) Prepare the journal entry for Headland to record income taxes payable, deferred income taxes, and income tax expense for 2016, assuming that there were no deferred taxes at the end of 2015. (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 0 for the amounts.) Account Titles and Explanation Debit Credit (b) Prepare the journal entry for Headland to record income taxes payable, deferred income taxes and income tax expense for 2016, assuming that there was a balance of $21,500 in a Deferred Tax Liability account at the end of 2015. (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 0 for the amounts.) Account Titles and Explanation Debit Credit (Ctrl)
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