chapter16

chapter16 - #3. CLASSIFICATION TAXABLE CURRENT-C...

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Charles Zipp Keishia Holder Courtney Rogers ACC 222 Current Future Taxable Deductable E16-27 Year Amounts 2009 2010 2011 2012 Pre-Tax Accounting Income $810,000 Temperary Differences: Warrenty Expense $80,000 ($20,000) ($25,000) ($15,000) Municipal bond interest ($10,000) Installment Income ($600,000) $150,000 $250,000 $200,000 Taxable Income (tax return) $280,000 $130,000 Enacted Tax Rate 30% 30% 40% 40% Tax payable currently $84,000 $39,000 Deferred Tax Liability Deferred Tax Asset Ending Balances Less:Beginning Balances Change in Balances Journal Entry At the End of 2 Debit Credit Income Tax expense (to Bala $303,000 Deferred Tax asset $8,000 Deferred Tax liability $227,000 Income tax payable $84,000 Pretax accounting income $810,000 Income Tax expense $303,000 Net Income $507,000 FUTURE
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Unformatted text preview: #3. CLASSIFICATION TAXABLE CURRENT-C (DEDUCTIBLTAX NON CURRENT -N AMOUNTS RATE Related Balance Sheet account Receivable-installment income N 150000 x30% Receivable-installment income N 470000 x40% Liability-Warranty Expense C 20000 x40% Net Current liability (Asset) Net noncurrent liability (asset) BALANCE SHEET PRESENTATION Current Assets: Deferred Tax asset $8,000 Long Term Liabilities Deferred tax Liability 227000 Future Future Taxable Deduction Amount Amount Total Total ($60,000) $600,000 $470,000 40% 40% $188,000 ($8,000) $188,000 39000 $227,000 $227,000 $8,000 Deferred LiabilityDeferred Asset $227,000 $8,000 $0 $0 $227,000 $8,000 DEFERRED TAX (ASSET) LIABILITY C N 39000 180000 8000 8000 227000...
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chapter16 - #3. CLASSIFICATION TAXABLE CURRENT-C...

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