E19-2 - Description/Account Solution E19-2 (a) Pretax...

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E19-2 (Two Differences, No Beginning Deferred Taxes, Tracked through 2 Years) The following information is available for McKee Corporation for 2012. 1. Excess of tax depreciation over book depreciation, $40,000. This $40,000 difference will reverse equally over the years 2013- 2016. 2. Deferral, for book purposes, of $25,000 of rent received in advance. The rent will be earned in 2013. 3. Pretax financial income, $350,000. 4. Tax rate for all years, 40%. (a) Compute taxable income for 2012.       $ (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2012.  (List multiple debit/credit entrie   Description/Account                 (c) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2013, assuming taxable income of $325
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Unformatted text preview: Description/Account Solution E19-2 (a) Pretax financial income for 2012 Excess of tax depreciation over book depreciation Rent received in advance Taxable income (b) Description/Account Income Tax Expense Deferred Tax Asset Income Tax Payable ($335,000 0.40) Deferred Tax Liability Temporary Difference Future Taxable (Deductible Amounts) **Depreciation * Unearned rent (c) Description/Account Income Tax Expense ($130,000 - $4,000 + $10,000) Deferred Tax Liability [$10,000 0.40] Income Tax Payable ($325,000 0.40) Deferred Tax Asset...
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This note was uploaded on 03/21/2012 for the course ACC 102 taught by Professor Benz during the Spring '12 term at CUNY Baruch.

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E19-2 - Description/Account Solution E19-2 (a) Pretax...

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