The following information is for James Industries' first year of operations. Amounts are in millions of dollars. In 2018 the company's pretax accounting income was $67. The enacted tax rate for 2017 and 2018 is 40%, and it is 35% for years after 2018.
Required:
Prepare a journal entry to record the income tax expense for the year 2018. Show well-labeled computations for income tax payable and the change in the deferred tax account.

Question

The following information is for James Industries' first year of operations. Amounts are in millions of dollars.  In 2018 the company's pretax accounting income was $67. The enacted tax rate for 2017 and 2018 is 40%, and it is 35% for years after 2018.
Required:
Prepare a journal entry to record the income tax expense for the year 2018. Show well-labeled computations for income tax payable and the change in the deferred tax account.

Quizplus · Accepted Answer

The Answer of The following information is for James Industries' first year of operations. Amounts are in millions of dollars.  In 2018 the company's pretax accounting income was $67. The enacted tax rate for 2017 and 2018 is 40%, and it is 35% for years after 2018.
Required:
Prepare a journal entry to record the income tax expense for the year 2018. Show well-labeled computations for income tax payable and the change in the deferred tax account.

The Following Information Is for James Industries' First Year of Operations