Aquafena Inc. recognized taxable income of $120,000 for the year ended December 31. Aquafena calculated a...

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Aquafena Inc. recognized taxable income of $120,000 for the year ended December 31. Aquafena calculated a deferred tax asset and a deferred tax liability of $14,400 and $9,600, respectively, on December 31. The tax rate is 25%. Assume zero beginning balances in deferred tax accounts. Required a. Determine the increase in income tax payable on December 31. $ 25,200 b. Prepare the income tax expense journal entry on December 31. Date Dec. 31 Account Name Income Tax Expense Deferred Tax Asset Income Tax Payable Deferred Tax Liability To record income tax expense. + # + # Dr. 25,200 14,400 0 0 X Cr. 0✔ 0✔ 30,000 9,600 Aquafena Inc. recognized taxable income of $120,000 for the year ended December 31. Aquafena calculated a deferred tax asset and a deferred tax liability of $14,400 and $9,600, respectively, on December 31. The tax rate is 25%. Assume zero beginning balances in deferred tax accounts. Required a. Determine the increase in income tax payable on December 31. $ 25,200 b. Prepare the income tax expense journal entry on December 31. Date Dec. 31 Account Name Income Tax Expense Deferred Tax Asset Income Tax Payable Deferred Tax Liability To record income tax expense. + # + # Dr. 25,200 14,400 0 0 X Cr. 0✔ 0✔ 30,000 9,600

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a Determining the increase in income tax payable on December 31 The increa... View the full answer