ACCT 320 Hinson 6-3 Accounting for Income Taxes

ACCT 320 Hinson 6-3 Accounting for Income Taxes - ACCT 320...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ACCT 320 Assignment 6-3 Accounting for Income Taxes Jamie Hinson October 19, 2008 P16-3 1. Journal Entry at the End of 2006 Income tax expense (to balance) $6,400,000 Income tax payable $1,600,000 Deferred tax liability $4,800,000 2. Journal Entry at the End of 2007 Income tax expense (to balance) $6,000,000 Income tax payable $1,750,000 Deferred tax liability $4,250,000 3. $4,000,000, because the income tax payable bracket would have gone up to $2,000,000.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
P16-8 1. A = temporary difference because it is only a two-year casualty insurance policy. B = non-temporary because the life insurance is an expense that occurs yearly on all key executives. C = as described, these are two temporary differences – one reversing in 2005; one originating in 2005. D = temporary because it was an unrealized loss that was not planned. E = non-temporary because it was a planned second loss contingency. F = temporary because there will generally be deferred tax liability. 2.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/08/2010 for the course ACCOUNTING 320 taught by Professor Hickman during the Spring '10 term at Heidelberg.

Page1 / 4

ACCT 320 Hinson 6-3 Accounting for Income Taxes - ACCT 320...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online