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1.Depreciation on the tax return is greater than depreciation on the income statement by $15,200.
2.Rent collected on the tax return is greater than rent recognized on the income statement by $24,100.
3.Fines for pollution appear as an expense of $10,400 on the income statement.
(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts.)
Prepare the income tax expense section of the income statement for 2017, beginning with the line “Income before income taxes.” (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
c(Round answer to 1 decimal places, e.g. 25.5%.)
ParticularsDebit amount $(Dr.)Deferred tax asset9,640(24,100×40%)Provision for tax29,680ParticularsDeferredtax liabilityIncome(15,200×40%)TemporarydifferenceIncometax payableAdd:…
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