# 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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## This note was uploaded on 12/02/2010 for the course ACCT 211 taught by Professor Frech during the Spring '10 term at Benedictine IL.

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

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