Bramble Corp. follows IFRS and began operations in 2020 and reported accounting income of $274,000 for the year. Bramble's CCA exceeded its book depreciation by $43,300. Bramble's tax rate for 2020 and years thereafter is 30%. Assume that the $43,300 difference is the only difference between Bramble's accounting income and taxable income. Prepare the journal entries to record the current tax expense, deferred tax expense, income tax payable, and the deferred tax liability. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2020
Bramble Corp. follows IFRS and began operations in 2020 and reported accounting income of $274,000 for the year. Bramble's CCA exceeded its book depreciation by $43,300. Bramble's tax rate for 2020 and years thereafter is 30%. Assume that the $43,300 difference is the only difference between Bramble's accounting income and taxable income. Prepare the journal entries to record the current tax expense, deferred tax expense, income tax payable, and the deferred tax liability. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit December 31, 2020
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 12P: Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax...
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