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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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