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Vickers Company reports taxable income of $4,500 for 2010. The company has two temporary differences between pretax financial income and taxable income at the end of 2010. The first difference is expected to result in taxable amounts totaling $2470 in future years. The second difference is expected to result in deductible amounts totaling $1,360 in future years. The company has a deferred tax asset of $372 and a deferred tax liability of $690 at the beginning of 2010. The current tax rate is 30% and no change in the tax rate has been enacted for future years. The company has positive, verifiable evidence of future taxable income.
Required: Prepare the Income Tax Journal Entry of the Vickers Company at the end of 2010 .
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