Discuss deferred tax asset and income tax payable

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Reference no: EM131771131

J-Matt, Inc., had pretax accounting income of $311,000 and taxable income of $350,000 in 2013. The only difference between accounting and taxable income is estimated product warranty costs for sales this year. Warranty payments are expected to be in equal amounts over the next three years. Recent tax legislation will change the tax rate from the current 40% to 30% in 2015.

Record the 2013 income taxes expense in the general ledger using the accounts Income tax expense, Deferred tax asset, and income tax payable?

Reference no: EM131771131

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