I have a question. I got right Deferred Tax Asset and $12,350Income Tax Payable $173,740 but I got wrong Income Tax Expense andDeferred tax liability.
Bridgeport Inc. has two temporary differences at the end of 2016.The first difference stems from installment sales, and the secondone results from the accrual of a loss contingency. Bridgeportâsaccounting department has developed a schedule of future taxableand deductible amounts related to these temporary differences asfollows.
2017 2018 2019 2020 Taxable Amounts 42,700 45,900 64,300 81,400 Deductible Amounts (13,600) (18,900) TOTALS 42,700 32,300 45,400 81,400
As of the beginning of 2016, the enacted tax rate is 34% for2016 and 2017, and 38% for 2018â2021. At the beginning of 2016, thecompany had no deferred income taxes on its balance sheet. Taxableincome for 2016 is $511,000. Taxable income is expected in allfuture years.
Prepare the journal entry to record income tax expense, deferredincome taxes, and income taxes payable for 2016.
I have a question. I got right Deferred Tax Asset and $12,350Income Tax Payable $173,740 but I got wrong Income Tax Expense andDeferred tax liability.
Bridgeport Inc. has two temporary differences at the end of 2016.The first difference stems from installment sales, and the secondone results from the accrual of a loss contingency. Bridgeportâsaccounting department has developed a schedule of future taxableand deductible amounts related to these temporary differences asfollows.
| 2017 | 2018 | 2019 | 2020 | |
| Taxable Amounts | 42,700 | 45,900 | 64,300 | 81,400 |
| Deductible Amounts | (13,600) | (18,900) | ||
| TOTALS | 42,700 | 32,300 | 45,400 | 81,400 |
As of the beginning of 2016, the enacted tax rate is 34% for2016 and 2017, and 38% for 2018â2021. At the beginning of 2016, thecompany had no deferred income taxes on its balance sheet. Taxableincome for 2016 is $511,000. Taxable income is expected in allfuture years.
Prepare the journal entry to record income tax expense, deferredincome taxes, and income taxes payable for 2016.
