Prepare journal entries to record tasha income tax

Reference no: EM13135897

At the end of the prior year, Tasha Inc. had a deferred tax asset of $21,000,000 attributable to its only timing difference, a temporary difference of $48,000,000 in a liability for estimated expenses. At that time a valuation allowance of $3,000,000 was established. At the end of the current year, the temporary difference is $47,000,000, and Tasha determines that the balance in the valuation account should now be $4,000,000. Taxable income is $18,000,000 and the tax rate is 35% for all years.

Prepare journal entries to record Tasha's income tax expense for the current year. Show well-labeled supporting computations for the income tax payable, the valuation allowance, and the change in the deferred tax asset account.

Reference no: EM13135897

Questions Cloud

Indicate the source of the data for crediting work : Present a list of the three controlling accounts used in the general ledger to record the inventories and, in each case, indicate the related subsidiary ledger.

What is the critical value for test grade results : fourth group was divided into small discussion groups. A high of 10 was possible. A sample of five tests was selected from each group. The test grade results were: At the 0.01 level, what is the critical value?

What are the concentrations of ni, so4 and k : solution of 116 mL of .180 m of KOH is mixed with 290 mL of .190 m NiSO4. What are the concentrations of Ni, SO4 and K that remain

Percentage-of-completion method of revenue recognition : Assume the percentage-of-completion method of revenue recognition is used on a long term construciton contract. Under this method, revenues that are earned but unbilled at the balance sheet date should be disclosed

Prepare journal entries to record tasha income tax : Prepare journal entries to record Tasha's income tax expense for the current year. Show well-labeled supporting computations for the income tax payable, the valuation allowance, and the change in the deferred tax asset account.

Prepare and test appropriate set of hypotheses : Formulate and test an appropriate set of hypotheses to determine if the machine can be qualified. Use a = 0.05. Find the P-value.

Bill of rights and english bill of rights 1689 : Describe in detail the similarities and differences between these two documents. In light of the recent national security legislation passed by Congress, i.e. the Patriot Act, do you believe our civil liberties have been compromised? Explain the re..

Prepare the appropriate journal entry for brogan : Prepare the appropriate journal entry for Brogan to record the income tax provision for the current year. Show well-labeled supporting computations.

Appropriate journal entry to record compensation : Prepare the appropriate journal entry to record compensation expense on December 31, 2011. Prepare the appropriate journal entry to record the lifting of restrictions on December 31,2011

User Account

All Pages