Question

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.
Required:
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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