The following information is available for Wenger Corporation for 2008.
1. Excess of tax depreciation over book depreciation, $40,000. This $40,000 difference will reverse equally over the years 2009 2012. 2. Deferral, for book purposes, of $20,000 of rent received in advance. The rent will be earned in 2009. 3. Pretax financial income, $300,000. 4. Tax rate for all years, 40%. Instructions (a) Compute taxable income for 2008. (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2008. (c) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2009, assuming taxable income of $325,000.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
May 2021
Categories |