The MC company presents the following information for 2022. There is an excess in tax depreciation over
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Question:
- The MC company presents the following information for 2022. There is an excess in tax depreciation over book depreciation of $40,000. This difference will be reversed in equal parts in 2023 to 2026. The company also received an advance rental income of $35,000. The rent is recognized as income in 2023.
Income before taxes is 450,000. There is a balance of deferred taxes until 2022 of $5,000. The following is requested:
- Calculate the record of taxable income for 2022.
- Prepare records for deferred tax, tax payable expense, and 2022 tax payable.
- Prepare records for deferred tax, tax expense payable, and 2023 tax payable, assuming taxable income of $325,000
Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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