Problem 2

At the end of 2012, ABC Company has cumulative temporary differences that will
result in reporting future taxable amounts as follows:
2013	$ 65,000
2014	$ 35,000
2015	$ 45,000
2016	$ 25,000
Tax rates enacted as of the beginning of 2011 are:
2011 and 2012		20%
2013 and 2014		25%
2015 and later		38%
ABC s taxable income for 2012 is:				$480,000
Taxable income is expected in all future years.
Assume that the balance of Deferred Tax Liability account at the end of 2011 was:							$48,000
Prepare the journal entry for ABC to record income taxes payable, deferred
income taxes, and income tax expense for 2012.