Reference no: EM132569725
The following information relates to Pharoah Corp.:
At July 01,2019 At June 30,2020
Temporary difference, giving rise to future taxable amount $31,900 $76,700
Temporary difference, giving rise to future deductible amount $ 19,900 $ 51,900
Accounting income for the year ended June 30, 2020 was $73,600. No permanent differences existed during the fiscal year. The company was expected to operate profitably in the future. The tax rate was 20% for the current and future years. Pharoah Corp. follows ASPE. Amount of taxable income for 2020 is 73600 + 31900 - 19900 - 76700 + 51900 = $ 60,800
Question 1: Prepare journal entry to record current and future tax expense for year 2020.
Question 2: Explain what amounts of non current future tax liability and current future tax asset will be shown on the balance sheet?