Solution-Make the journal entry to record income taxes

Make the journal entry to record income taxes payable

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Reference no: EM132450126

Problem - Culver Company has the following two temporary differences between its income tax expense and income taxes payable.

	2017	2018	2019
Pretax financial income	$849,000	$883,000	$961,000
Excess depreciation expense on tax return	(30,800)	(38,900)	(10,300)
Excess warranty expense in financial income	21,000	9,600	8,000
Taxable income	$839,200	$853,700	$958,700

The income tax rate for all years is 40%.

Required - Assuming there were no temporary differences prior to 2017, make the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019.

Reference no: EM132450126

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Make the journal entry to record income taxes payable

Reference no: EM132450126

Reference no: EM132450126

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