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Brief Exercise 18-14 At December 31, 2019, Flounder Corporation had a deferred tax asset of $737,500, resulting from future deductible amounts of $2.95 million and
Brief Exercise 18-14 At December 31, 2019, Flounder Corporation had a deferred tax asset of $737,500, resulting from future deductible amounts of $2.95 million and an enacted tax rate o 25%. In May 2020, new income tax legislation is signed into law that raises the tax rate to 30% for 2020 and future years. Prepare the journal entry for Flounder to adjust the deferred tax account. (Credit account titles are automatically indented when the amount is entered. Do no 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 SHOW LIST OF ACCOUNTS Brief Exercise 18-3 Bramble Inc. had accounting income of $155,000 in 2020. Included in the calculation of that amount is the CEO's life insurance expense of $3,100, which is not deductible for tax purposes. In addition, the undepreciated capital cost (UCC) for tax purposes is $13,500 lower than the net carrying amount of the property, plant, and equipment, although the amounts were equal at the beginning of the year. Prepare Bramble's journal entry to record 2020 taxes, assuming IFRS and a tax rate of 25%. (Credit account titles are automatically indented when the 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.) Date Account Titles and Explanation Debit Credit 2020 (To record current tax expense) 2020 (To record deferred tax expense) SHOW LIST OF ACCOUNTS Question Attempts: 0 of 3 used
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