Athe end of the prior year tasha inc had a deferred tax

Assignment Help Accounting Basics

Reference no: EM13593093

At the end of the prior year, Tasha Inc. had a deferred tax asset of $21,000,000 attributable to its only timing difference, a temporary difference of $48,000,000 in a liability for estimated expenses. At that time a valuation allowance of $3,000,000 was established. At the end of the current year, the temporary difference is $47,000,000, and Tasha determines that the balance in the valuation account should now be $4,000,000. Taxable income is $18,000,000 and the tax rate is 35% for all years.

Prepare journal entries to record Tasha's income tax expense for the current year. Show well-labeled supporting computations for the income tax payable, the valuation allowance, and the change in the deferred tax asset account.

Reference no: EM13593093

Questions Cloud

A company purchased a machine on january 1 of the current : a company purchased a machine on january 1 of the current year for 750000. calculate the annual depreciation expense

A 5 kg ball is thrown upward with an initial speed of 30 : question a 5 kg ball is thrown upward with an initial speed of 30 meters per second. suppose there is a constant air

Two semicircular arcs have radii r2 102 cm and r1 340 cm : two semicircular arcs have radii r2 10.2 cm and r1 3.40 cm carry current i 0.820 a and share the same center of

Included with the bank statement was a debit memorandum in : base on the above information prepare the november bank reconciliation and adjusting entries for the avisa company.the

Athe end of the prior year tasha inc had a deferred tax : at the end of the prior year tasha inc. had a deferred tax asset of 21000000 attributable to its only timing

A 5 kg ball is thrown upward with an initial speed of 30 : question a 5 kg ball is thrown upward with an initial speed of 30 meters per second. suppose there is a constant air

A solenoid that is 131 cm long has a radius of 258 cm and : a solenoid that is 131 cm long has a radius of 2.58 cm and a winding of 1430 turns it carries a current of 2.72 a.

The richburn manufacturing company increased its : the richburn manufacturing company increased its merchandise inventory by 21000 over the year. the company also granted

A particle with a charge of 4c and a mass of 12kg is : a particle with a charge of 4c and a mass of 12kg is travelling in a circular path around a fixed particle of charge

User Account

All Pages