Question: At the end of 2016 its first year of operations

At the end of 2016, 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 2016. 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.
1. Prepare Slater’s income tax journal entry at the end of 2016.
2. Show how the deferred taxes would be reported on Slater’s December 31, 2016, balance sheet.

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  • CreatedOctober 05, 2015
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