Deferred income taxes Nebraska Ltd., at the end of 2014, its first year of operations, prepared a reconciliation between pre-tax accounting income and taxable income as follows: Use of the depreciable assets will result in taxable amounts of $200,000 in each of the next Income Taxes 18- 29 three years.The estimated expenses of $500,000 will be deductible in 2017 when settlement is expected to be made. The enacted tax rate is 25% and is not expected to change. Instructions
a.Prepare a schedule of the deferred taxable and deductible amounts.
b.Prepare the required adjusting journal entries to record income taxes for 2014.

Question

Deferred income taxes Nebraska Ltd., at the end of 2014, its first year of operations, prepared a reconciliation between pre-tax accounting income and taxable income as follows:  Use of the depreciable assets will result in taxable amounts of $200,000 in each of the next Income Taxes 18- 29 three years.The estimated expenses of $500,000 will be deductible in 2017 when settlement is expected to be made. The enacted tax rate is 25% and is not expected to change. Instructions 
a.Prepare a schedule of the deferred taxable and deductible amounts.
b.Prepare the required adjusting journal entries to record income taxes for 2014.

Quizplus · Accepted Answer

The Answer of Deferred income taxes Nebraska Ltd., at the end of 2014, its first year of operations, prepared a reconciliation between pre-tax accounting income and taxable income as follows:  Use of the depreciable assets will result in taxable amounts of $200,000 in each of the next Income Taxes 18- 29 three years.The estimated expenses of $500,000 will be deductible in 2017 when settlement is expected to be made. The enacted tax rate is 25% and is not expected to change. Instructions 
a.Prepare a schedule of the deferred taxable and deductible amounts.
b.Prepare the required adjusting journal entries to record income taxes for 2014.

Deferred Income Taxes Nebraska Ltd