Sandhill Corp. follows IFRS and began operations in 2023 and reported accounting income of $273,000 for the year. Sandhill's CCA exceeded its book depreciation by $39,200. Sandhill's tax rate for 2023 and years thereafter is 30%. Assume that the $39,200 JL:I

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 12P: Comprehensive Colt Company reports pretax financial income of 143,000 in 2019. In addition to pretax...
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Sandhill Corp. follows IFRS and began operations in 2023 and reported accounting income of $273,000 for the year. Sandhill's CCA
exceeded its book depreciation by $39,200. Sandhill's tax rate for 2023 and years thereafter is 30%. Assume that the $39,200
difference is the only difference between Sandhill's accounting income and taxable income.
Prepare the journal entries to record the current tax expense, deferred tax expense, income tax payable, and the deferred tax liability.
(List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.
If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Date
December 31,
2023
December 31,
2023
Account Titles and Explanation
(To record current tax expense)
(To record deferred tax expense)
II
Debit
Credit
Transcribed Image Text:Sandhill Corp. follows IFRS and began operations in 2023 and reported accounting income of $273,000 for the year. Sandhill's CCA exceeded its book depreciation by $39,200. Sandhill's tax rate for 2023 and years thereafter is 30%. Assume that the $39,200 difference is the only difference between Sandhill's accounting income and taxable income. Prepare the journal entries to record the current tax expense, deferred tax expense, income tax payable, and the deferred tax liability. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date December 31, 2023 December 31, 2023 Account Titles and Explanation (To record current tax expense) (To record deferred tax expense) II Debit Credit
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