At the end of the preceding year, World Industries had a deferred tax asset of $10,750,000,...

  

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At the end of the preceding year, World Industries had a deferred tax asset of $10,750,000, attributable to Its only temporary differenc of $43,000,000 for estimated expenses. At the end of the current year, the temporary difference is $38,000,000. At the beginning of the year there was no valuation account for the deferred tax asset. At year-end, World Industries now estimates that it is more likely than not that one-third of the deferred tax asset will never be realized. Taxable income is $11,300,000 for the current year and the tax rate is 25% for all years. Required: Prepare journal entries to record World Industries' income tax expense for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollar amount.) View transaction list Journal entry worksheet 2 Record the income taxes. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal At the end of the preceding year, World Industries had a deferred tax asset of $10,750,000, attributable to Its only temporary differenc of $43,000,000 for estimated expenses. At the end of the current year, the temporary difference is $38,000,000. At the beginning of the year there was no valuation account for the deferred tax asset. At year-end, World Industries now estimates that it is more likely than not that one-third of the deferred tax asset will never be realized. Taxable income is $11,300,000 for the current year and the tax rate is 25% for all years. Required: Prepare journal entries to record World Industries' income tax expense for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollar amount.) View transaction list Journal entry worksheet 2 Record the income taxes. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer rating: 100% (QA)

Answer World Industries Journal Entries Event Particulars Debit Credit 1 Income tax expens... View the full answer