Prepare slater’s income tax journal entry at the end of 2019 and show how the deferred taxes would be reported on slater’s December 31, 2019, balance sheet.

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 5E
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at the end of 2019, it’s first year of operations, slater company reported a book value for its depreciable assets of $40,000 for financial reporting purposes and $33,000 for income tax purposes. slater earned taxable income of 97,000 during 2019. The company is subject to a 30% income tax rate, and no change has been enacted for future years. The depreciation was the only temporary difference between taxable income and pretax financial income.

Prepare slater’s income tax journal entry at the end of 2019 and show how the deferred taxes would be reported on slater’s December 31, 2019, balance sheet.

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