Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Exercise 19-8 2014 2015 2016 $841,800 $918,300 $948,600 (36,300 ) (43,200 ) (29,

ID: 2461440 • Letter: E

Question

Exercise 19-8

2014

2015

2016

$841,800

$918,300

$948,600

(36,300

)

(43,200

)

(29,500

)

23,800

14,630

9,650

$829,300

$889,730

$928,750

Warning

Don't show me this message again for the assignment

Ok

Cancel

Account Titles and Explanation

Debit

Credit

2014

2015

2016

Warning

Don't show me this message again for the assignment

Ok

Cancel

Show List of Accounts

Link to Text

Link to Text

Button Company
Balance Sheet
2016

Warning

Don't show me this message again for the assignment

Ok

Cancel

Show List of Accounts

Link to Text

Link to Text

Button Company
Income Statement (Partial)
Year ended December 31, 2016

Warning

Don't show me this message again for the assignment

Ok

Cancel

Show List of Accounts

Link to Text

Link to Text

Exercise 19-8

Button Company has the following two temporary differences between its income tax expense and income taxes payable.

2014

2015

2016

Pretax financial income

$841,800

$918,300

$948,600

Excess depreciation expense on tax return

(36,300

)

(43,200

)

(29,500

)

Excess warranty expense in financial income

23,800

14,630

9,650

Taxable income

$829,300

$889,730

$928,750


The income tax rate for all years is 40%.

Warning

Don't show me this message again for the assignment

Ok

  

Cancel

  

Explanation / Answer

Date Account Title and Explainations Debit Credit 2014 Income Tax Expense 3,36,720.00 Deferred Tax Asset        9,520.00 Income Tax Payable 3,31,720.00 Deferred Tax Liability      14,520.00 2015 Income Tax Expense 3,67,320.00 Deferred Tax Asset        5,852.00 Income Tax Payable 3,55,892.00 Deferred Tax Liability      17,280.00 2016 Income Tax Expense 3,79,440.00 Deferred Tax Asset        3,860.00 Income Tax Payable 3,71,500.00 Deferred Tax Liability      11,800.00 Balance Sheet Presentation 2014 2015 2016 Current Assets Deferred Tax Asset        9,520.00        5,852.00     3,860.00 Long Term Liability Deferred Tax Liability      14,520.00      17,280.00 11,800.00