At the end of 2013, its first year of operations, Slater Company reported a book value for
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At the end of 2013, its first year of operations, Slater Company reported a book value for its depreciable assets of $40,000 for financial reporting purposes and $33,000 for income tax purposes. Slater earned taxable income of $97,000 during 2013. The company is subject to a 30% income tax rate, and no change has been enacted for future years. The depreciation was the only temporary difference between taxable income and pretax financial income.
Required:
1. Prepare Slater's income tax journal entry at the end of 2013.
2. Show how the deferred taxes would be reported on Slater's December 31, 2013, balance sheet.
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Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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