CurrentCullumber Corporation began operations in 2025 and reported pretax financial income of $226,000 for the year. Cullumber's taxdepreciation exceeded its book depreciation by $39,000. Cullumber's tax rate for 2025 and years thereafter is 30%. Assume thisonly difference between Cullumber's pretax financial income and taxable income.Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (List all debit enbefore credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.entry is required, select "No Entry" for the account titles and enter O for the amounts.)Account Titles and ExplanationDebitCreditShow how the deferred tax liability will be classified on the December 31, 2025, balance sheet.Deferred tax liability should be classified as aon the December 31, 2025, balance sheet.

Deferred tax which is described as the tax difference between the current tax and any differential…

Cullumber Corporation began operations in 2025 and reported pretax financial income of $226,000 for depreciation exceeded its book depreciation by $39,000. Cullumber's tax rate for 2025 and years thereafter is 30%. Assume this only difference between Cullumber's pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (List all debit er before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually entry is required, select "No Entry" for the account titles and enter O for the amounts.)

Cullumber Corporation began operations in 2025 and reported pretax financial income of $226,000 for depreciation exceeded its book depreciation by $39,000. Cullumber's tax rate for 2025 and years thereafter is 30%. Assume this only difference between Cullumber's pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (List all debit er before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually entry is required, select "No Entry" for the account titles and enter O for the amounts.)

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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