Question $1-$ Chapter $16$ Grad

Deferred Tax Liabilities

Income Tax Journal Entries

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At the end of the year, the deferred tax asset account had a balance of $\backslash (\backslash$$ $40\backslash )$ million attributable to a temporary difference of $\backslash (\backslash$$ $160\backslash )$ million in a liability for estimated expenses. Taxable income is $\backslash (\backslash$$ $184\backslash )$ million. No temporary differences existed at the beginning of the year, and the tax rate is $\backslash (25\backslash \%\backslash ).$

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$\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline No & Transaction & $\backslash$multicolumn$\{2\}\{|$c$|\}\{$General Journal$\}$ & Debit & Credit $\backslash \backslash$

$\backslash$hline $1$ & $1$ & Income tax expense & $\backslash (\backslash$checkmark $\backslash )$ & $6,000,000$ & $\backslash \backslash$

$\backslash$hline & & Deferred tax asset & $\backslash (\backslash$checkmark $\backslash )$ & $40,000,000$ X & $\backslash \backslash$

$\backslash$hline & & Income tax payable & v & & $46,000,000\backslash \backslash$

$\backslash$hline $2$ & $2$ & Income tax expense & $($ & $30,000,000$ X & $\backslash \backslash$

$\backslash$hline & & Valuation allowance & $\backslash (\backslash$cdot $\backslash )$ & & $30,000,000\backslash (\backslash$times $\backslash )\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$