Exercise 19-7

Complete the following statements by filling in the blanks.

In a period in which a taxable temporary difference reverses, the reversal will cause taxable income to be pretax financial income. If a $76,200 balance in Deferred Tax Asset was computed by use of a 40% rate, the underlying cumulative temporary difference amounts to (c) Deferred taxes recorded to account for permanent differences. If a taxable temporary difference originates in 2017, it will cause taxable income for 2017 to be pretax financial income for 2017 of s If total tax expense is $51,700 and deferred tax expense is $67,200, then the current portion of the expense computation is referred to as current tax If a corporation's tax return shows taxable income of $96,300 for Year 2 and a tax rate of 40%, how much will appear on the December 3, Year 2, balance sheet for income taxes payable if the company has made estimated tax payments of $35,400 for Year 2? $ (f) An increase in the Deferred Tax Liability account on the balance sheet is recorded by a to the Income Tax Expense account. An income statement that reports current tax expense of $80,000 and deferred tax benefit of $22,000 will report total income tax expense of$ that s portion of etered A valuation account is needed whenever it is judged to be realized. i) If the tax return shows total taxes due for the period of $75,600 but the income statement shows total income tax expense of $57,100, the difference of $18,500 is referred to as deferred tax