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Hi, Can you help me with the attached problem? Thank you Exercise 19-8 Button Company has the following two temporary differences between its income tax
Hi,
Can you help me with the attached problem?
Thank you
Exercise 19-8 Button Company has the following two temporary differences between its income tax expense and income taxes payable. 2014 Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income $840,000 (30,000) 20,000 $830,000 2015 $910,000 (40,000) 10,000 $880,000 2016 $945,000 (10,000) 8,000 $943,000 The income tax rate for all years is 40%. Don't show me this message again for the assignment Prepare the journal entry to record income tax expense, deferred income taxes, and income tax payable for 2014, 2015, and 2016. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit 2014 2015 2016 Credit Don't show me this message again for the assignment Show List of Accounts Link to Text Link to Text Assuming there were no temporary differences prior to 2014, indicate how deferred taxes will be reported on the 2016 balance sheet. Button's product warranty is for 12 months. Button Company Balance Sheet 2016 $ $ Don't show me this message again for the assignment Show List of Accounts Link to Text Link to Text Prepare the income tax expense section of the income statement for 2016, beginning with the line \"Pretax financial income.\" (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Button Company Income Statement (Partial) Year ended December 31, 2016 $ $ $ Don't show me this message again for the assignment Show List of AccountsStep by Step Solution
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