Respuesta :
Tax Expense- (Debit) $40,000
To Taxes Payable (Credit) $36,000
To Deferred Tax Liability (Credit) $4,000
What is the difference between deferred tax asset and deferred tax liability?
A deferred tax liability shows a future tax requirement or payment due, whereas a deferred tax asset shows a financial advantage. People who have standard 401(k) plans, for instance, can contribute to their accounts using pre-tax income.
Why is depreciation deferred tax liability?
A delayed tax liability typically arises when the government's accounting practices diverge from those of a conventional business. One frequent illustration is the depreciation of fixed assets. Companies often use a straight-line depreciation approach to disclose depreciation in their financial accounts.
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The correct question is:
In year 1, Casa Corp. has depreciation expense for income statement purposes of $20,000. The depreciation deduction on the tax return was $30,000. The enacted tax rate is 40%. Casa's pretax income for the year was $100,000, and its taxable income was $90,000. If this is the only difference between pretax income and taxable income, the journal entry to record tax expense for the year would include which of the following entries? (Select all that apply.)
