【文章內(nèi)容簡介】 Taxes Payable 28,000 Deferred Tax Liability— Noncurrent 2,000 $30,000 – $2,000 Journal Entry for 2020 $5,000 x $28,000 current + $2,000 deferred (continues) Example 3: Deferred Tax Liability 1624 Depreciation expense in 2020 is the same for both financial and tax, so the entry is simple. Ine Tax Expense 30,000 Ine Taxes Payable 30,000 $75,000 (continues) Example 3: Deferred Tax Liability 1625 For 2020, Roland earns ine of $75,000 and the taxable ine is $95,000, puted as follows: Financial ine subject to tax $75,000 Add temporary difference: Excess of book depreciation ($25,000) over tax depreciation ($5,000) 20,000 Taxable ine $95,000 Tax ($95,000 ) $38,000 Example 3: Deferred Tax Liability 1626 Ine Tax Expense 30,000 Deferred Tax Liability—Noncurrent 8,000 Ine Taxes Payable 38,000 Journal Entry for 2020 $95,000 $38,000 current – $8,000 deferred benefits (continues) Example 3: Deferred Tax Liability 1627 Example 3: Deferred Tax Liability 1628 Example 4: Deferred Tax Asset For 2020, Sandusky Inc. putes pretax financial ine of $22,000. The only difference between financial and taxable ine is Sandusky accruing warranty expense in the year of the sale for financial reporting. For tax purpose, it deducts only actual expenditures. Actual warranty expense for 2020 was $18,000。 no actual warranty expenditures were made in 2020. (continues) 1629 Example 4: Deferred Tax Asset Taxable ine for 2020 is puted as follows: Financial ine subject to tax $22,000 Add temporary difference: Excess of warranty expense over warranty deductions 18,000 Taxable ine $40,000 Taxable ine ($40,000 ) $16,000 (continues) 1630 Example 4: Deferred Tax Asset Ine Tax Expense 8,800 Deferred Tax Asset—Current 2,400 Deferred Tax Asset— Noncurrent 4,800 Ine Taxes Payable 16,000 1/3 $7,200 Journal Entry for 2020 2/3 $7,200 $16,000 current – $7,200 deferred benefits (continues) 1631 Ine before ine taxes $22,000 Deferred Tax Asset—Current $16,000 Deferred Tax Asset— Noncurrent (7,200) 8,800 Net ine $13,200 Sandusky’s 2020 ine statement would present ine tax expense as follows: Example 4: Deferred Tax Asset (continues) 1632 In subsequent periods, taxable ine would be $16,000, puted as follows: Ine subject to tax $22,000 Reversal of temporary difference: Excess of warranty deductions (1/3 $18,000) over warranty expense ($0) (6,000) Taxable ine $16,000 Tax ($16,000 .40) $ 6,400 (continues) Example 4: Deferred Tax Asset 1633 Example 4: Deferred Tax Asset The following table illustrates the journal entries that would be made each year: 1634 For 2020, Hsieh reported pretax financial ine of $38,000. As of December 31, 2020, the actual depreciation expense was $25,000 and the actual warranty expense was $18,000. For ine tax reporting, these expenses were $40,000 and $0, respectively. The table on Slide 1635 summarizes 2020 through 2020. (continues) Example 5: Deferred Tax Liabilities and Assets 1635 Example 5: Deferred Tax Liabilities and Assets (continues) 1636 Example 5: Deferred Tax Liabilities and Assets Financial ine subject to tax $38,000 Add (deduct) temporary differences: Excess of warranty expense over warranty deductions 18,000 Excess of tax depreciation over book depreciation (15,000) Taxable ine $41,000 Taxable ine in 2020 is calculated as follows: Tax ($41,000 .40) $16,