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bell corp. recognized $76,000 in current income tax expense during the year. pretax gaap income was $178,000 and deferred income tax expense is $12,000 for the year. prepare (a) the income tax section of the income statement for bell corp. for the year and (b) the disclosure of current and deferred income tax expense.

Sagot :

The disclosure of current and deferred income tax expense. We are provided the following information in the query.Tax rate as of law is 30%.For the year, pretax income was $80,000 $76,000 is the taxable income.

Now it is possible to calculate: Pretax income for the year minus tax costs Enacted tax rate equals $24,000 ($80,000 x 30%).Tax due is calculated as follows: $76,000 30% = $22,800.Excessive tax liability: Tax expense minus Tax payable equals $24,000 minus $22,800, or $1,200 in total.The following will then be entered into the record:

Debit $24,000 in tax expenses.

Credit the $22,800 in taxes due.

Credit $1,200 in deferred tax obligations.

Consequently, the following are the appropriate choices: deduct a $24,000 tax expense.

d. credit the $22,800 in taxes that are due; e. credit the $1,200 in deferred tax liability.

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