The following journal entry summarizes for the current year the income tax expen

Question

The following journal entry summarizes for the current year the income tax expense of Sophie's Software Warehouse:

What is the amount of income tax that the company has paid or expects to pay in conjunction with its income tax return for the current year?

Illustrate the allocation of the liabilities shown in the above journal entry between the classifications of current liabilities and long-term liabilities.

current liabilities

The following journal entry summarizes for the current year the income tax expense of Sophie's Software Warehouse:

Explanation / Answer

b) Income tax payble along woth IT return:   12,90,000/-

             Already paid: 960,000/-

             Balnce to be paid in Cash : 3,30,000/-

c)    Current Liabilities

               Income tax payable :   330,000/-

               Deferred income taxes      30,000/-

               Total current tax liabilities 360,000/-

               Non current Liabilities

               Deferred income taxes    180,000/-

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