Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On 1 January 20X3, Highmark Corp. had the following deferred tax balances: Deferred income tax asset related to warranty Deferred income tax liability related to
On 1 January 20X3, Highmark Corp. had the following deferred tax balances: Deferred income tax asset related to warranty Deferred income tax liability related to capital assets $ 16,000 $120.000 On this date, the net book value of capital assets was $1,750,000 and UCC was $1,450,000. There was a warranty liability of $40,000. In 20x3, accounting Income was $170,000. This included non-tax-deductible expenses of $42,000, dividend revenue (non- taxable) of $12,000, depreciation of $75,000, and a warranty expense of $39,000. Warranty claims pald were $51,000 and CCA was $99,000 Required: Provide the journal entry to record tax expense in 20X3. The enacted tax rate was 41% In 20X3. (If no entry is required for a transaction/event, select "No Journal entry required" In the first account field.) View transaction list Journal entry worksheet Record the entry for current and deferred tax expense/benefit. Note: Enter debits before credits. Date General Journal Debit Credit 20X3 Record entry Clear entry View general journal
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started