KLS Co.'s only temporary tax difference relates to amortization of its capital assets. The opening future income
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KLS Co.'s only temporary tax difference relates to amortization of its capital assets. The opening future income tax liability is $20,000. At the end of the year the undepreciated capital cost (UCC) (tax basis) of the capital asset is $450,000 and the net book value is $500,000. KLS's income tax rate is 30% and it reports under ASPE using the future income taxes method. By which of the following amounts does the future income tax liability account need to be debited or credited at the end of the year?
A. $ 5,000 debit
B. $ 5,000 credit
C. $15,000 debit
D. $15,000 credit
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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