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E19-3B (One Temporary Difference, Future Taxable Amounts, One Rate, Beginning Deferred Taxes)At the beginning of 2014, Krypton Inc. reporting a deferred tax liability of $80,000. At the end of 2014, the related cumulative temporary difference amounts to $

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E19-3B (One Temporary Difference, Future Taxable Amounts, One Rate, Beginning Deferred Taxes)At the beginning of 2014, Krypton Inc. reporting a deferred tax liability of $80,000. At the end of 2014, the related cumulative temporary difference amounts to $300,000, and it will reverse evenly over the next 4 years. Pretax accounting income for 2014 is $380,000, the tax rate for all years is 40%, and taxable income for 2014 is $280,000.;Instructions;(a) Compute income taxes payable for 2014.;(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2014.;(c) Prepare the income tax expense section of the income statement for 2014 beginning with the line;?Income before income taxes.?

 

Paper#75339 | Written in 18-Jul-2015

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