Wk 4 CA 19-1 - EXERCISE 19-1(15-20 minutes(a Pretax...

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Unformatted text preview: EXERCISE 19-1 (15-20 minutes) (a) Pretax financial income for 2007 $0 Temporary difference resulting in future taxable amounts in 2008 $0 in 2009 $0 in 2010 $0 Taxable income for 2007 $0 Taxable income for 2007 $0 Enacted tax rate 0% Income tax payable for 2007 $0 (b) Future Years 2008 2009 2010 Total Future taxable (deductible) amounts $0 $0 $0 $0 Tax rate 0% 0% 0% Deferred tax liability (asset) $0 $0 $0 $0 Deferred tax liability at the end of 2007 $0 Deferred tax liability at the beginning of 2007 $0 Deferred tax expense for 2007 (increase in deferred tax liability) $0 Current tax expense for 2007 (Income tax payable) $0 Income tax expense for 2007 $0 Income Tax Expense $0 Income Tax Payable $0 Deferred Tax Liability $0 (c) Income before income taxes $0 Income tax expense Current $0 Deferred $0 $0 Net income $0 Note: The current/deferred tax expense detail can be presented in the notes to the financial statements. CA-19-1 (a) (b) (c) There are two main objectives in accounting for income taxes, which are to recognize the amount of taxes...
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Wk 4 CA 19-1 - EXERCISE 19-1(15-20 minutes(a Pretax...

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