INTERMEDIATE ACCOUNTING-MYACCOUNTINGLAB
3rd Edition
ISBN: 9780136946533
Author: GORDON
Publisher: PEARSON
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Textbook Question
Chapter 17, Problem 17.2P
Temporary Differences,
Year | Income before Tax and Depreciation | Tax Depreciation | GAAP Depreciation |
1 | $ 920,000 | $ 840,000 | $ 700,000 |
2 | 1,600,000 | 1.344.000 | 700,000 |
3 | 1,780,000 | 806.400 | 700,000 |
4 | 2,100,000 | 483.840 | 700,000 |
5 | 1.750.000 | 483.840 | 700,000 |
6 | 1,200,500 | 241.920 | 700,000 |
Totals | $4,200,000 | $4,200,000 |
Required
- a. Determine the balance of the deferred tax account at the end of each year.
- b. Prepare the journal entries to record the tax provision for each year.
- c. Prepare the
journal entry to record the effect of a 35% income tax rate that is enacted into law effective as of the beginning of Year 4.
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Chapter 17 Solutions
INTERMEDIATE ACCOUNTING-MYACCOUNTINGLAB
Ch. 17 - Prob. 17.1QCh. 17 - When will income tax expense and income taxes...Ch. 17 - Will permanent differences cause the effective tax...Ch. 17 - When do permanent differences arise?Ch. 17 - How are deferred tax assets and deferred tax...Ch. 17 - Prob. 17.6QCh. 17 - Prob. 17.7QCh. 17 - Prob. 17.8QCh. 17 - Prob. 17.9QCh. 17 - How does a firm determine the need for a valuation...
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