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E19-13B (One Difference, Multiple Rates, Effect of Beginning Balance versus No Beginning Deferred Taxes)At the end of 2014, Frontier Corporation has $360,000 of cumulative temporary differences that will result in reporting future taxable amounts as follo

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E19-13B (One Difference, Multiple Rates, Effect of Beginning Balance versus No Beginning Deferred Taxes)At the end of 2014, Frontier Corporation has $360,000 of cumulative temporary differences that will result in reporting future taxable amounts as follows.;2015 $105,000;2016 90,000;2017 75,000;2018 90,000;$360,000;Tax rates enacted as of the beginning of 2013 are;2013 and 2014 30%;2015 40%;2016 and later 35%;Frontier?s taxable income for 2014 is $605,000. Taxable income is expected in all future years.;Instructions;(a) Prepare the journal entry for Frontier to record income taxes payable, deferred income taxes, and income tax expense for 2014, assuming that there were no deferred taxes at the end of 2013.;(b) Prepare the journal entry for Frontier to record income taxes payable, deferred income taxes, and income tax expense for 2014, assuming that there was a balance of $136,000 in a Deferred Tax Liability account at the end of 2013.

 

Paper#75313 | Written in 18-Jul-2015

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