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Unformatted text preview: The estimated litigation expenses of $750,000 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 35% for all years. Deferred Tax asset 262500 Income tax payable 105000 Deferred tax liability 367500...
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