Acc Ch 19 - Please complete the following exercises by...

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E19-1 (One Temporary Difference, Future Taxable Amounts, One Rate, No Beginning Deferred Taxes) Starfleet Corporation has one temporary difference at the end of 2010 that will reverse and cause taxable amounts of $55,000 in 2011, $60,000 in 2012, and $75,000 in 2013. Starfleet’s pretax financial income for 2010 is $400,000, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2010. Instructions (a) Compute taxable income and income taxes payable for 2010. Pretax Income for 2010 $400,000.00 Temporary Difference 2011 $(55,000.00) 2012 $(60,000.00) 2013 $(75,000.00) $(190,000.00) Taxable Income 2010 $210,000.00 Enacted Tax Rate 30% Income Tax Payable 2010 $63,000.00 (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2010. 2011
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This note was uploaded on 01/20/2012 for the course ACCOUNTING 101 taught by Professor Dubai during the Spring '11 term at Abu Dhabi University.

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