Chap016 - Student Name: Instructor Class: McGraw-Hill/Irwin...

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Student Name: Instructor Class: McGraw-Hill/Irwin Problem 16-04 ZEKANY CORPORATION Calculations 2011 2012 2013 2014 Pretax accounting income $60,000 $80,000 $70,000 $70,000 Depreciation for tax (39,600) (52,800) (18,000) (9,600) Taxable income $20,400 $27,200 $52,000 $60,400 Tax rate 30% 30% 40% 40% Tax payable $6,120 $8,160 $20,800 $24,160 Correct! Correct! Correct! Correct! Cumulative Temporary 2011 2012 2013 2014 Difference Straight-line 30,000 30,000 30,000 30,000 Tax depreciation (39,600) (52,800) (18,000) (9,600) Temporary differences: (9,600) (22,800) 12,000 20,400 $- «- Correct! 2011 (22,800) 12,000 20,400 $9,600 «- Correct! 2012 12,000 20,400 $32,400 «- Correct! 2013 20,400 $20,400 «- Correct! 2014 $- «- Correct! 2011 2012 2013 2014 Cumulative difference $9,600 $32,400 $20,400 $- Tax rate 30% 40% 40% 40% Year-end balance $2,880 $12,960 $8,160 $- Previous balance - (2,880) (12,960) (8,160) Credit/(debit) $2,880 $10,080 $(4,800) $(8,160) Correct! Correct! Correct! Correct!
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Student Name: Instructor Class: McGraw-Hill/Irwin Problem 16-04 ZEKANY CORPORATION General Journal Account Debit Credit Journal entry at the end of 2011 Income tax expense 9,000 «- Correct! Deferred tax liability 2,880 Income tax payable 6,120 Journal entry at the end of 2012 Income tax expense 18,240 «- Correct! Deferred tax liability
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Chap016 - Student Name: Instructor Class: McGraw-Hill/Irwin...

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