Compute income tax payable-prepare journal entries

Assignment Help Accounting Basics

Reference no: EM1356105

(Two Temporary Differences, One Rate, Beginning Deferred Taxes) The following facts relate to Krung Thep Corporation.

1.Deferred tax liability, January 1, 2007, $40,000.

2.Deferred tax asset, January 1, 2007, $0.

3.Taxable income for 2007, $95,000.

4.Pretax financial income for 2007, $200,000.

5.Cumulative temporary difference at December 31, 2007, giving rise to future taxable amounts, $240,000.

6.Cumulative temporary difference at December 31, 2007, giving rise to future deductible amounts, $35,000.

7.Tax rate for all years, 40%.

8.The company is expected to operate profitably in the future.

Instructions

a. Compute income taxes payable for 2007.

b. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2007.

c. Prepare the income tax expense section of the income statement for 2007, beginning with the line "Income before income taxes."

Reference no: EM1356105

Questions Cloud

Create program to calculate and display number of miles : Create a program to calculate and displays the number of miles per hour over the speed limit that a speeding driver was doing. The program should ask for the speed limit and the drivers speed.

Define identify the kind of societal expectation of behavior : Explain Identify the kind of societal expectation of behavior and what standard of behavior is most appropriate

Optimal sample definitions and data collection : It is known that through optimal sample definitions and data collection, test norms are not absolute. With this they can change with time or with a different norm group.

Plan to construct an investment portfolio : Determine how you plan to create an investment portfolio. What steps do you plan to undertake to create your portfolio? How do you plan to weight the portfolio? How do you plan to account for risk?

Compute income tax payable-prepare journal entries : Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2007. Prepare the income tax expense section of the income statement for 2007, beginning with the line "Income before income taxes."

Analyze the importance of demographics : Analyze the importance of demographics and physical infrastructure and Analyze the influence of cultural differences

Develop vision system for building high safe mobile robot : You are tasked to develop a vision system for building a high safe mobile robot. In particular, your system should give a warning alarm when there are a danger of colliding (at certain distance) with a pedestrian.

Calculate the npv and irr of the project : A corporation' initial investment is $220 million, obtainable at the end of the plant's useful life in ten years. Your corporation uses straight line depreciation.

Journal entries for jane geddes engineering : Prepare the 2009 journal entries for all of the following transactions and adjustments. Show full computations. You can ignore dates if not given. Round all amounts to nearest dollar.

User Account

All Pages