*Exercise 19-7 Complete the following statements by filling in the blanks (a) In

Question

*Exercise 19-7 Complete the following statements by filling in the blanks (a) In a period in which a taxable temporary difference reverses, the reversal will cause taxable income to be pretax financial income (b) If a $79,600 balance in Deferred Tax Asset was computed by use of a 40% rate, the underlying cumulative temporary difference amounts to $ Deferred taxes recorded to account for permanent differences If a taxable temporary difference originates in 2017, it will cause taxable income for 2017 to be financial income for 2017 pretax (e) If total tax expense is $50,700 and deferred tax expense is $66,700, then the current portion of the expense computation is referred to as current tax If a corporation's tax return shows taxable income of $97,400 for Year 2 and a tax rate of 40%, how much will appear of $ (f) on the December 31, Year 2, balance sheet for "Income taxes payable" if the company has made estimated tax payments of $35,600 for Year 2? $ An increase in the Deferred Tax Liability account on the balance sheet is recorded by a Expense account. to the Income Tax (h) An income statement that reports current tax expense of $84,200 and deferred tax benefit of $24,000 will report total income tax expense of $ A valuation account is needed whenever it is judged to be that a portion of a deferred tax asset realized (i) If the tax return shows total taxes due for the period of $72,500 but the income statement shows total income tax expense of $56,200, the difference of $16,300 is referred to as deferred tax

Explanation / Answer

(A) GREATER THAN

(B) $199,000

($79600/40)*100=$199000

(C) ARE NOT

(D) LESS THAN

(E) BENEFIT, $16000

Income Taxes Payable or Refundable
±
Change in Deferred Income Taxes
=
Total Income Tax Expense or Benefit

$(66,700-50,700)

(F) $3360

$(97400*40/100) = $38960

$38960-$35600 = $3360

(G) DEBIT

(H) $60200

$(84200-24000) = $60200

(I) MORE LIKELY THAN NOT,

WILL NOT BE

(J) BENEFIT

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