At the end of 2010, Valerie Corporation reported a future tax liability of $31,000. At the end
Question:
2012 ..........$67,000
2013...........50,000
2014 ...........45,000
2015 ...........39,000
$201,000
The tax rates enacted as of the beginning of 2010 are as follows: 40% for 2010 and 2011; 30% for 2012 and 2013; and 25% for 2014 and later. Taxable income is expected in all future years.
Instructions
(a) Calculate the future tax account balance at December 31, 2011.
(b) Prepare the journal entry for Valerie to record future income taxes for 2011.
(c) Early in 2012, after the 2011 financial statements were released, new tax rates were enacted as follows: 29% for 2012 and 27% for 2013 and later. Prepare the journal entry for Valerie to recognize the change in tax rates. Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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