Question: (Two Temporary Differences, One Rate, Beginning Deferred Taxes) The following facts relate to Alschuler Corporation. 1. Deferred tax liability, January 1, 2010, $40,000. 2. Deferred

(Two Temporary Differences, One Rate, Beginning Deferred Taxes) The following facts relate to Alschuler Corporation. 1. Deferred tax liability, January 1, 2010, $40,000. 2. Deferred tax asset, January 1, 2010, $0. 3. Taxable income for 2010, $154,100. 4. Pretax financial income for 2010, $295,300. 5. Cumulative temporary difference at December 31, 2010, giving rise to future taxable amounts, $294,800. 6. Cumulative temporary difference at December 31, 2010, giving rise to future deductible amounts, $53,600. 7. Tax rate for all years, 40%. 8. The company is expected to operate profitably in the future. (a) Compute income taxes payable for 2010. $ (b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2010. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

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