Prepare the journal entry to record income tax expense

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QUESTION - The following facts relate to Krung The p Corporation:

Deferred tax liability, January 1, 2015, $40,000

Deferred tax asset, January 1, 2015, $0

Taxable income for 2015, $115,000

Pretax financial income for 2015, $200,000

Cumulative temporary difference at December 31, 2015, giving rise to future taxable amounts, $220,000

Cumulative temporary difference at December 31, 2015, giving rise to future deductible amounts, $35, 000

Tax rate for all years, 40%

The company is expected to operate profitably in the future.

Required -

a. Compute income taxes payable for 2015.

b. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2015.

Reference no: EM132948020

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