During 2010, Florimax Heights Corp. income statement reported income of $410,000 before tax. The companys income tax

Question:

During 2010, Florimax Heights Corp. income statement reported income of $410,000 before tax. The company’s income tax return filed with the IRS showed taxable income of $360,000. During 2010, Florimax Heights was subject to an income tax rate of 32%.

Requirements
1. Journalize Florimax Heights income taxes for 2010.
2. How much income tax did Florimax Heights have to pay for the year 2010?
3. At the beginning of 2010, Florimax Heights balance of Deferred Tax Liability was $34,000. How much Deferred Tax Liability did Florimax Heights report on its at December 31, 2010?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...