Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 19 - Accounting for Income Taxes - Review and Practice - Brief Exercises - Page 1094: BE19-11

Answer

The journal entry shall be; Income tax expense ............120,000 ..........Deferred tax liability ..................120,000 Please see below working.

Work Step by Step

Rate = 40% -34% = 6% Deferred tax liability = 2,000,000*6% = 120,000
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.