Listed below are items that are commonly accounted for differently for financial reporting purposes than they are for tax purposes. A temporary difference that will result in how to write a 2500 word essay in one day deductible amounts and, therefore, will usually give rise to a deferred income tax asset.
A temporary difference that will result in future taxable amounts and, therefore, will usually give rise to a deferred income tax liability. 320,000 are due per the tax return for 2010. No deferred taxes existed at the beginning of 2010. Compute taxable income for 2010.
Compute pretax financial income for 2010. Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2010 and 2011. The following information has been obtained for the Gocker Corporation. Prior to 2010, taxable income and pretax financial income were identical. It is to be depreciated on a straight-line basis over 5 years for tax purposes and over 8 years for financial reporting purposes. Hint: Use the half-year convention for tax purposes, as discussed in Appendix 11A. 60,000 was earned on tax-exempt municipal obligations in 2011.