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Unformatted text preview: Income Tax Payable ($800,000 x .40) 320,000 Deferred Tax Liability ($120,000 x .35) 42,000 2011 Income Tax Expense 317,666 Deferred Tax Liability 30,000 Income Tax Payable ($980,000 x .35) 343,000 Deferred Tax Asset ($40,000/3 x .35) 4,666 P19-1, Three Differences, No Beginning Deferred Taxes, Multiple Rates The following information is available for Remmers Corporation for 2010. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by (a) Compute taxable income for 2010. (b) Compute pretax financial income for 2010. (c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes Problem 19-1, Page 2 of 2, 11/20/2010, 07:01:54 Income before income taxes $890,000 Income tax expense Current $320,000 Deferred 28,000 348,000 Net income $1,238,000 (d) Prepare the income tax expense section of the income statement for 2010, beginning with "Income before income taxes."...
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This note was uploaded on 11/19/2010 for the course ACCT 557 ACC 557 taught by Professor None during the Spring '10 term at Keller Graduate School of Management.
- Spring '10