Deferred income taxes.;Hunt Co. at the end of 2010, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows;Pretax financial income $ 750,000;Estimated expenses deductible for taxes when paid 1,200,000;Extra depreciation (1,350,000);Taxable income $ 600,000;Estimated warranty expense of $800,000 will be deductible in 2011, $300,000 in 2012, and $100,000 in 2013. The use of the depreciable assets will result in taxable amounts of $450,000 in each of the next three years.;Instructions;(a) Prepare a table of future taxable and deductible amounts.;(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2010, assuming an income tax rate of 40% for all years.
Paper#25470 | Written in 18-Jul-2015Price : $22