The following information relates to Bridgeport Inc. At July 1, 2016 At June 30,
ID: 2414009 • Letter: T
Question
The following information relates to Bridgeport Inc. At July 1, 2016 At June 30, 2017 Temporary difference, giving rise to future taxable amounts Temporary difference, giving rise to future deductible amounts $82,000 34,000 $159,000 84,000 Accounting income for the year ended June 30, 2017 was $128,000. No permanent differences existed during the fiscal year. The company was expected to operate profitably in the future. The tax rate was 17% for the current and future years. Bridgeport Inc. follows IFRS ? (b) Prepare the journal entries to record income taxes for 2017. (Credit account titles are automatically indented when the 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.). Account Titles and Explanation Debit Credit (To record current tax expense) To record deferred tax expense)Explanation / Answer
Solution b:
Computation of Taxable income and income tax payable for year ended June 30, 2017 Particulars Amount Accounting Income $128,000.00 Less: Temporary differences giving rise to future taxable amounts ($159,000 - $82,000) $77,000.00 Add: Temporary differences giving rise to future deductible amounts ($84,000 - $34,000) $50,000.00 Taxable Income $101,000.00 Tax rate 17% Income tax payable $17,170.00Related Questions
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