Solution-Deferred tax liability, Assume that at the end of

Deferred tax liability

Assignment Help Taxation

Reference no: EM13553499

Deferred Tax Liability

Teancum Inc. began operating on January 1, 2008. At the end of the first year of operations, Teancum reported $600,000 income before income taxes on its income statement but only $510,000 taxable income on its tax return. Analysis of the $90,000 difference revealed that
$50,000 was a permanent difference and $40,000 was a temporary tax liability difference related to a current asset. The enacted tax rate for 2008 and future years is 35%.

1. Prepare the journal entries to record income taxes for 2008.

2. Assume that at the end of 2009, the accumulated temporary tax liability difference related to future years is $80,000. Prepare the journal entry to record any adjustment to deferred tax liabilities at the end of 2009.

Reference no: EM13553499

Questions Cloud

Evaluate the distance between the object and the lens : An object is located to the left of a convex lens with a focal length of 24 cm. The image formed is a real image, and the image is three times as large as the object. What is the distance between the object and the lens

What price would you try to negotiate for the last 20 units : What price would you try to negotiate for the last 20 units? One line answers will be efficient

What frequency is heard by a pedestrian : An ambulance siren has a frequency of 440 Hz as heard by the driver. What frequency is heard by a pedestrian as the ambulance approaches him at a speed of 32.0 m/s

What is the far point of this person : A near-sighted person wears an old prescription, where the power of his glasses is - 3.23 Diopters. What is the far point of this person

Deferred tax liability : Assume that at the end of 2009, the accumulated temporary tax liability difference related to future years is $80,000. Prepare the journal entry to record any adjustment to deferred tax liabilities at the end of 2009.

Define the systematic names for the formulas : Give the systematic names for the formulas, or the formulas for the names. (using the format copper(II) chloride for CuCl2, and using the format CO2 for CO2. Omit the centered dot for hydrates.)

Determine at what speed must the golfer hit the ball : A seasoned mini golfer is trying to make par on a tricky hole #5. at what speed must the golfer hit the ball to land the ball in the hole? Assume a frictionless surface and the acceleration due to gravity is 9.81 m/s2

Prepare the entry to record one years depreciation expense : Prepare the entry to record one years depreciation expense of $5,000 for the equipment as of December 31, 2011. In cases where no entry is required, please select the option "No journal entry required" for your answer to grade correctly.

Explain a volume of helium in order to reduce : How much pressure needs to applied to a volume of helium in order to reduce it's volume from 100mL to 40 mL

User Account

All Pages

Deferred tax liability

Reference no: EM13553499

Reference no: EM13553499

Questions Cloud

Reviews

Write a Review

Taxation Questions & Answers

Taxable income

Prepare a tax research memo

Income by ordinary concepts

Identify the tax issues

Calculate carolines taxable income

Taxation – law and practice

Payment to the taxpayer

Prepare regular corporation tax return

Taxation law

A tax on cigarettes is a good way of raising tax revenue

Prepare the required journal entry

Calculate barbs taxable income

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT