Reference no: EM13868277
Tiger, Inc. reports the following results for 2014, its initial year of operations:
Gross Receipts $991,000
Depreciation 50,000
Postage 1,000
Advertising 40,000
Salaries 100,000
Net Income 800,000
Assume a tax rate of 35%
Tiger’s tax depreciation exceeds book depreciation by $80,000. Calculate the current, deferred, and total tax expense for 2014 and prepare the journal entry needed to record this.
Calculate the deferred tax asset/liability for 2014 and prepare the journal entry needed to record this.
Assuming book depreciation exceeds tax depreciation by $100,000 in 2015, calculate the deferred tax asset/liability at the end of 2015
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