FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The following information is available for Bramble Corporation for 2024 (its first year of operations).
1.
Excess of tax depreciation over book depreciation, $42,400. This $42,400 difference will reverse equally over the years
2025-2028.
2.
Deferral, for book purposes, of $20,300 of rent received in advance. The rent will be recognized in 2025.
3.
Pretax financial income, $272,300.
4.
Tax rate for all years, 30%.
(a)
Your answer is correct.
Compute taxable income for 2024.
Taxable income $
250200
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (List all debit
entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Income Tax Expense
Deferred Tax Asset
Deferred Tax Liability
Income Tax Payable
Debit
79410
6090
Credit
10440
75060
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Transcribed Image Text:Current Attempt in Progress The following information is available for Bramble Corporation for 2024 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $42,400. This $42,400 difference will reverse equally over the years 2025-2028. 2. Deferral, for book purposes, of $20,300 of rent received in advance. The rent will be recognized in 2025. 3. Pretax financial income, $272,300. 4. Tax rate for all years, 30%. (a) Your answer is correct. Compute taxable income for 2024. Taxable income $ 250200 Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Income Tax Expense Deferred Tax Asset Deferred Tax Liability Income Tax Payable Debit 79410 6090 Credit 10440 75060
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