Solution:
Journal Entries - Pronghorn Corp. | |||
Event | Particulars | Debit | Credit |
a | Income tax expense Dr | $306,000.00 | |
Deferred tax assets Dr [($440,000*40%) - $154,400] | $21,600.00 | ||
To Income taxes payable ($819,000*40%) | $327,600.00 | ||
(To record income tax expense) | |||
b | Income tax expense Dr | $32,900.00 | |
To Allowance to reduce deferred tax asset to expected | $32,900.00 | ||
(To record valuation account) |
Exercise 19-12 Pronghorn Corp. has a deferred tax asset account with a balance of $154,400 at...
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