continuation for work JAIN

(a)

Your answer has been saved and sent for grading. See Gradebook for score details.

Compute income taxes payable for 2012.

Income taxes payable

$

Taxable income

$153,180

Enacted tax rate

30

%

Income taxes payable

$45,954

Click here if you would like to Show Work for this question

Show List of Accounts

Link to Text

Attempts: 1 of 1 used

(b)

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2012.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

Deferred Tax

Temporary Difference

Future Taxable
(Deductible) Amounts

Tax Rate

(Asset)

Liability

First one

$293,040

30

%

$87,912

Second one

(46,620

)

30

%

$(13,986

)

Totals

$246,420

$(13,986

)

$87,912

*Because of a flat tax rate, these totals can be reconciled: $246,420 x 30% = $(13,986) + $87,912.

Deferred tax liability at the end of 2012

$87,912

Deferred tax liability at the beginning of 2012

53,280

Deferred tax expense for 2012 (increase required in deferred tax liability)

$34,632

Deferred tax asset at the end of 2012

$13,986

Deferred tax asset at the beginning of 2012

0

Deferred tax benefit for 2012 (increase required in deferred tax asset)

$ (13,986

)

Deferred tax expense for 2012

$34,632

Deferred tax benefit for 2012

(13,986

)

Net deferred tax benefit for 2012

20,646

Current tax expense for 2012 (Income taxes payable)

45,954

Income tax expense for 2012

$66,600