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What amount of deferred tax asset will be presented

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Reference no: EM132556046

In 2019, Kaer Morhen Corp. received an advance payment of rental of 800,000. The unearned rent collected in advance represents the tenant's 2020 rental. The income tax rate is 30%.

                                                       2019                     2020

Accounting income                  3,000,000         5,000,000

Taxable income                        3,800,000         4,200,000

Temporary difference                  ( 800,000)        800,000

Requirements:

Question 1. What amount of income tax expense will be recorded in 2019?

Question 2. What amount of deferred tax asset will be presented in the 2019 statement of financial position?

Question 3. Provide the necessary journal entries in 2019 & 2020 to record income taxes, assuming payment of tax due were made for both 2019 and 2020

Reference no: EM132556046

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