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Unformatted text preview: asset and deferred (future) income tax liability at the end of 2012. d. Calculate the net future tax expense (benefit) for 2012. e. Prepare the journal entry(ies) recording income tax expense, income tax payable, and deferred income taxes for 2012. f. Lilliput adheres to IFRS. How would the income tax expense and any deferred income taxes be disclosed on the financial statements? TRU Open Learning BBUS 3211 • PRACTICE EXAMINATION 11 of 13 Question 5 (10 marks) Ling Corp.’s reported pretax incomes for 2012 and the previous two years as follows: 2012 2011 2010 $ 150,000 $125,000 $95,000 2012’s income was correctly determined after taking into account the following accounting changes and error corrections made during the year (the errors were made in previous years but were not discovered until 2012). The incomes for 2010 and 2011 do not take these items into account and are stated at the amounts determined at the time. Required: a.
For each of the following situations prepare the journal entry or entries Ling Corp. would...
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