Question
The following data applies to the company XYZ: Profit before tax for the year to 30 June 2020 -$200,000 Taxable income for the year to
The following data applies to the company XYZ:
- Profit before tax for the year to 30 June 2020 -$200,000
- Taxable income for the year to 30 June 2020 - $ 450,000
- Deferred tax liability 1 July 2019 - $105,000
- Deferred tax Asset 1 July 2019 - $64,000
- Taxable temporary differences on 30 June 2020 - $320,000
- Deductible temporary differences at 30 June 2020 - $210,000
Assume the corporate tax is 40%.Select the right calculations for the required tax components and related journal entries:
Income tax expense for the year ended 30 June 2020, credited toCurrent Tax Liability would be:
Answer 1
Choose...
Dr Deferred Tax Asset- 20,000Dr Income Tax Expense- 3,000Cr Deferred Tax Liability-23,000
$20,000
$95,750
There is no enough information.
$15,000
$52,650
$116,750
$128,000
$23,000
$180,000
$27,500
Dr Deferred Tax Liability -3,750Cr Income Tax Expense- 2,500Cr Deferred Tax Asset-1,250
Dr Deferred Tax Liability-3,750Cr Income Tax Expense- 1,250Cr Deferred Tax Asset-2,500
Deferred tax liability (Before adjusting to opening balance) as of 30th June 2020 would be:
Answer 2
Choose...
Dr Deferred Tax Asset- 20,000Dr Income Tax Expense- 3,000Cr Deferred Tax Liability-23,000
$20,000
$95,750
There is no enough information.
$15,000
$52,650
$116,750
$128,000
$23,000
$180,000
$27,500
Dr Deferred Tax Liability -3,750Cr Income Tax Expense- 2,500Cr Deferred Tax Asset-1,250
Dr Deferred Tax Liability-3,750Cr Income Tax Expense- 1,250Cr Deferred Tax Asset-2,500
Increase in deferred tax asset for the year ended 30th June 2020 would be:
Answer 3
Choose...
Dr Deferred Tax Asset- 20,000Dr Income Tax Expense- 3,000Cr Deferred Tax Liability-23,000
$20,000
$95,750
There is no enough information.
$15,000
$52,650
$116,750
$128,000
$23,000
$180,000
$27,500
Dr Deferred Tax Liability -3,750Cr Income Tax Expense- 2,500Cr Deferred Tax Asset-1,250
Dr Deferred Tax Liability-3,750Cr Income Tax Expense- 1,250Cr Deferred Tax Asset-2,500
Journal entry torecorddeferred tax for the year ended 30th June 2020?
Answer 4
Choose...
Dr Deferred Tax Asset- 20,000Dr Income Tax Expense- 3,000Cr Deferred Tax Liability-23,000
$20,000
$95,750
There is no enough information.
$15,000
$52,650
$116,750
$128,000
$23,000
$180,000
$27,500
Dr Deferred Tax Liability -3,750Cr Income Tax Expense- 2,500Cr Deferred Tax Asset-1,250
Dr Deferred Tax Liability-3,750Cr Income Tax Expense- 1,250Cr Deferred Tax Asset-2,500
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
