What is the journal entry to record income taxes income

Reference no: EM13591410

Lyons Company deducts depreciation expense of $150,000 for tax purposes in 2010, but the expense is not yet recognized for accounting purposes. In 2011, 2012, and 2013, no depreciation expense will be deducted for tax purposes, but $50,000 of depreciation expense will be reported for accounting purposes in each of these years. Lyons Company has a tax rate of 20% for all of the years in question. There were no deferred taxes at the beginning of 2010.

a. Is the deferred tax account an asset or a liability?

b. How much is in the deferred asset(liability) account at the end of December 31, 2010?

c. What is the journal entry to record income taxes, income taxes payable and deferred taxes on December 31, 2010 if the pre-tax financial statement income for December 31, 2010 is $325,000.

Reference no: EM13591410

Questions Cloud

Alameda service center just purchased an automobile hoist : alameda service center just purchased an automobile hoist for 14000. the hoist has a 6 year lifeand an estimated

Kenneth washingtons weekly gross earnings for the week : kenneth washingtons weekly gross earnings for the week ending december 18 were 1230 and his federal income tax

Hands up uses the straight-line method for depreciation of : a company called hands up located in texas manufactures latex gloves used in the medical industry. hands up purchased a

An employee earns 40 per hour and 15 times that rate for : an employee earns 40 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. assume that the

What is the journal entry to record income taxes income : lyons company deducts depreciation expense of 150000 for tax purposes in 2010 but the expense is not yet recognized for

Research the doctrine of promissory estoppel online use an : research the doctrine of promissory estoppel online. use an actual case to help you discuss the following questionshow

Toggles fishing fleet had 20000 shares of 5 20 par value : toggles fishing fleet had 20000 shares of 5 20 par value preferred stock and 15000 shares of 25 par value common stock

Wise company is considering an investment that requires an : wise company is considering an investment that requires an outlay of 600000 and promises an after-tax cash inflow 1

How much money must the company set aside now in an : a company that specializes in online security software development wants to have 85 million available in 3 years to

User Account

All Pages