Valtor Corporation reported the following information at the beginning of its current fiscal year (Click the icon to view the deferred tax balances at the beginning of the year) During the year. Valtor reported the following information (Click the icon to view the information ) Required Prepare the journal entry or entries to record income tax for the year Before preparing the journal entres, let's compute Valtor's taxable income and taxes payable accounting income for computing tax expense, femporary differences and then deferred tax debits or credits required We'll begin with the computation of taxat income and taxes payable (Use a minus sign or parentheses for numbers to be subtracted and to enter deferred tax credits Enter a "0" for any zero balances. For the temporary difference column enter the net temporary difference for depreciation and CCA combined on the CCA line and then enter the net temporary difference for warranty expense and warranty payments on the warranty payments line) - X Information - X Deferred tax balances at the beginning of the year Hem transaction Income before taxes Depreciation CCA Deferred income tax asset (warranties) Deferred income tax liability (depreciable assets) a. Income before income taxes for the year was $1,200,000, and the tax rate was 35% b. Depreciation expense was $80,000, and capital cost allowance was $102,000. The carrying amount of property, plant, and equipment at the end of the year was $427,000, while undepreciated capital cost was $350,000 c. Warranty expense was reported at $46,000, while actual cash paid out was $41,000 The warranty liability had a year-end balance of $14.000 d. No other items affected deferred tax amounts other than these transactions 5 2.700 DA $ 16 500 C Warranty expense Warranty payments Subtotal Print Tax rate Done Taxes payable or expense Print Done Prepare the journal entre line of the Accounts colun ord debits first, then credits Explanations are not required. If no entry is required select "No entry required" on the first Valtor Corporation reported the following information at the beginning of its current fiscal year (Click the icon to view the deferred tax balances at the beginning of the year) During the year. Valtor reported the following information (Click the icon to view the information ) Required Prepare the journal entry or entries to record income tax for the year Before preparing the journal entres, let's compute Valtor's taxable income and taxes payable accounting income for computing tax expense, femporary differences and then deferred tax debits or credits required We'll begin with the computation of taxat income and taxes payable (Use a minus sign or parentheses for numbers to be subtracted and to enter deferred tax credits Enter a "0" for any zero balances. For the temporary difference column enter the net temporary difference for depreciation and CCA combined on the CCA line and then enter the net temporary difference for warranty expense and warranty payments on the warranty payments line) - X Information - X Deferred tax balances at the beginning of the year Hem transaction Income before taxes Depreciation CCA Deferred income tax asset (warranties) Deferred income tax liability (depreciable assets) a. Income before income taxes for the year was $1,200,000, and the tax rate was 35% b. Depreciation expense was $80,000, and capital cost allowance was $102,000. The carrying amount of property, plant, and equipment at the end of the year was $427,000, while undepreciated capital cost was $350,000 c. Warranty expense was reported at $46,000, while actual cash paid out was $41,000 The warranty liability had a year-end balance of $14.000 d. No other items affected deferred tax amounts other than these transactions 5 2.700 DA $ 16 500 C Warranty expense Warranty payments Subtotal Print Tax rate Done Taxes payable or expense Print Done Prepare the journal entre line of the Accounts colun ord debits first, then credits Explanations are not required. If no entry is required select "No entry required" on the first
