(One Temporary Difference, Future Taxable Amounts, One Rate, No Beginning Deferred
Taxes) Texas Corporation has one temporary difference at the end of 2014 that will reverse and
cause taxable amounts of		$55,000	in 2015,	$60,000	in 2016, and	$75,000
in 2017. Texas pretax financial income for 2014 is				$400,000	and the tax rate is
30%	for all years. There are no deferred taxes at the beginning of 2014.
Instructions: fill in all form and show calculation
(a) Compute taxable income and income taxes payable for 2014.
	Pretax financial income for 2014					Amount
	Temporary difference resulting in future taxable amounts in year:
				2014	Amount
				2015	Amount
				2016	Amount	Formula
	Taxable income for 2014					Formula
	Enacted tax rate					Percentage
	Income tax payable for 2014					Formula
(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2014.
Future Years			2014	2015	2016	Total
Future taxable (deductible) amounts			Amount	Amount	Amount	Formula
Tax rate			Percentage	Percentage	Percentage
Deferred tax liability (asset)			Formula	Formula	Formula	Formula
	Deferred tax liability at the end of 2014					Formula
	Deferred tax liability at the beginning of 2014					Amount
	Deferred tax expense for 2014(increase in deferred tax liability)					Formula
	Current tax expense for 2014 (Income tax payable)					Amount
	Income tax expense for 2014					Formula
	Account Title				Formula
	Account Title					Amount
	Account Title					Amount
(c) Prepare the income tax expense section of the income statement for 2014, beginning with the line "Income before income taxes."
	Income before income taxes				Amount
	Income tax expense
	Current			Amount
	Deferred			Amount	Formula
	Net income after income taxes				Formula