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See photos for question, the green portions are taken care of, I just need help with the red/gray boxes. Exercise 19-8 Button Company has the
See photos for question, the green portions are taken care of, I just need help with the red/gray boxes.
Exercise 19-8 Button Company has the following two temporary differences between its income tax expense and income taxes payable Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income $840,000 $910,000 $945,000 (30,000) (40,000) (10,000) 8,000 $830,000 $880,000 $943,000 20,0001 10,000 The income tax rate for all years is 40%. Your answer is correct. 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) Debit 2014 Account Titles and Explanation Credit Income Tax Expense 336000 Deferred Tax Asset 8000 Income Tax Payable 332000 Deferred Tax Liability 12000Step by Step Solution
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