ch19 - The estimated litigation expenses of $800,000 will...

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Name: __________________________ Problem chapter 19 1. Deferred income taxes. Lexicon Co. at the end of 2010, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 1,200,000 Extra depreciation taken for tax purposes (930,000) Estimated expenses deductible for taxes when paid 800,000 Taxable income $ 1,070,000 Use of the depreciable assets will result in taxable amounts of $310,000 in each of the next three years.
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Unformatted text preview: The estimated litigation expenses of $800,000 will be deductible in 2012 when settlement is expected. Instructions (a) Prepare a schedule of future taxable and deductible amounts. (b) Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for 2010, assuming a tax rate of 30% for all years....
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This note was uploaded on 03/27/2012 for the course ACCT 3312 taught by Professor Staff during the Spring '08 term at Texas A&M University, Corpus Christi.

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