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The pre - tax income statements for ZYX Corporation for two years ( summarized ) were as follows: 2 0 1 3 2 0 1
The pretax income statements for ZYX Corporation for two years summarized were as follows:
Revenues $ $
Expenses
Pretax income $ $
For tax purposes, the following income tax differences existed:
Revenues on the statement of profit and loss include $ rent, which is taxable in but was unearned at the end of for accounting purposes.
Expenses on the statement of profit and loss include membership fees of $ which are not deductible for income tax purposes.
Expenses on the statement of profit and loss include $ of estimated warranty costs, which are not deductible for income tax purposes until
Expenses on the statement of profit and loss include $ of estimated warranty costs, which are not deductible for income tax purposes until
Required:
What was the accounting carrying value and tax basis for unearned revenue and the warranty liability at the end of and
Compute a income tax payable, b deferred income tax and c income tax expense for each period. Assume an average tax rate of
Give the entry to record income taxes for each period.
What amount of deferred income tax will be reported on the statement of financial position at yearend?
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