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Make the journal entry to record income tax expense

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Reference no: EM132842326

The followings facts relate to Mckane Corporation:

  1. Deferred tax liability, January 1, 2017, $60,000.
  2. Deferred tax asset, January 1, 2017, $20,000.
  3. Taxable income for 2017, $115,000.
  4. Cumulative temporary difference at December 31,2017, giving rise to future taxable amounts, $210,000.
  5. Cumulative temporary difference at December 31,2017, giving rise to future deductible amounts, $95,000.

Instructions

Problem 1: Compute the amount of pretax financial income for 2017.

Problem 2: Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017.

Problem 3: Prepare the income tax expense section of the income statement for 2017, beginning with the line "Income before income taxes".

Reference no: EM132842326

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