ch19_sol - Name: Solution Date: Instructor: Course:...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
63b2d62cb17dc30d8a404a4512332808c1ecc5bc.xlsx, Exercise 19-1 Solution, Page 1 of 8, 03/29/2012, 01:32:29 Name: Solution Date: Instructor: Course: E19-1 (One Temporary Difference, Future Taxable Amounts, One Rate, No Beginning Deferred cause taxable amounts of $55,000 in 2013, $60,000 in 2014, and $75,000 in 2015. Starfleet’s pretax financial income for 2012 is $400,000 and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2012. Instructions: Pretax financial income for 2012 $400,000 2013 $55,000 2014 60,000 2015 75,000 (190,000) Taxable income for 2012 210,000 Enacted tax rate 30% Income tax payable for 2012 $63,000 Future Years 2013 2014 2015 Total Future taxable (deductible) amounts $55,000 $60,000 $75,000 $190,000 Tax rate 30% 30% 30% Deferred tax liability (asset) $16,500 18,000 22,500 $57,000 Deferred tax liability at the end of 2012 $57,000 Deferred tax liability at the beginning of 2012 0 Deferred tax expense for 2012 (increase in deferred tax liability) 57,000 Current tax expense for 2012 (Income tax payable) 63,000 Income tax expense for 2012 $120,000 Income Tax Expense 120,000 Income Tax Payable 63,000 Deferred Tax Liability 57,000 Income before income taxes $400,000 Income tax expense Current $63,000 Deferred 57,000 120,000 Net income after income taxes $280,000 Note: The current/deferred tax expense detail can be presented in the notes to the financial statements. Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse Taxes) Starfleet Corporation has one temporary difference at the end of 2012 that will reverse and (a) Compute taxable income and income taxes payable for 2012. Temporary difference resulting in future taxable amounts in year: (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2012. (c) Prepare the income tax expense section of the income statement for 2012, beginning with the line "Income before income taxes."
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
63b2d62cb17dc30d8a404a4512332808c1ecc5bc.xlsx, Exercise 19-1, Page 2 of 8, 03/29/2012, 01:32:31 Name: Date: Instructor: Course: E19-1 (One Temporary Difference, Future Taxable Amounts, One Rate, No Beginning Deferred cause taxable amounts of $55,000 in 2013, $60,000 in 2014, and $75,000 in 2015. Starfleet’s pretax financial income for 2012 is $400,000 and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2012. Instructions: Pretax financial income for 2012 Amount 2013 Amount 2014 Amount 2015 Amount Formula Taxable income for 2012 Formula Enacted tax rate Percentage Income tax payable for 2012 Formula Future Years 2013 2014 2015 Total Future taxable (deductible) amounts Amount Amount Amount Formula Tax rate Percentage Percentage Percentage Deferred tax liability (asset) Formula Formula Formula Formula Deferred tax liability at the end of 2012 Formula Deferred tax liability at the beginning of 2012 Amount Deferred tax expense for 2012 (increase in deferred tax liability) Formula Current tax expense for 2012 (Income tax payable) Amount Income tax expense for 2012 Formula Account Title Formula Account Title Amount Account Title Amount Income before income taxes Amount Income tax expense Current Amount Deferred Amount Formula Net income after income taxes Formula Intermediate Accounting , 14 th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 8

ch19_sol - Name: Solution Date: Instructor: Course:...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online