Question
b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017. Income Tax Expense.......................................................... Deferred Tax Asset.....................................................
b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017.
Income Tax Expense..........................................................
Deferred Tax Asset.....................................................
Income Taxes Payable.......................................
Deferred Tax Liability.........................................
Deferred tax liability at the end of 2017
Deferred tax liability at the beginning of 2017
Deferred tax expense for 2017 (increase
required in deferred tax liability)
Deferred tax asset at the end of 2017
Deferred tax asset at the beginning of 2017
Deferred tax benefit for 2017 (increase
required in deferred tax asset)
Deferred tax expense for 2017
Deferred tax benefit for 2017
Net deferred tax benefit for 2017
Current tax expense for 2017 (Income taxes payable)
Income tax expense for 2017
c) Prepare the income tax expense section of the income statement for 2017, beginning with the line Income before income taxes..
Income before income taxes
Income tax expense
Current
Deferred
Net income
d) Compute the effective income tax rate for 2017.
Exercise 19-4 (Part Level Submission) Blossom Company reports pretax financial income of $75,900 for 2017. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $15,200. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $22,100 3. Fines for pollution appear as an expense of $12,000 on the income statement. Blossom's tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2017. Compute taxable income and income taxes payable for 2017 Taxable income Income taxes payableStep by Step Solution
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