Muhammad Fajri Kisman Adam

A031191106

P19-4

A. Pretax financial income $ 750.000

Permanent differences
Insurance expense 9.000
Bond interest revenue (4.000)
Pollution fines
Temporary differences
Depreciation

Expense (30.000)

Installment sales ($100.000-$75.000) (25.000)

Warranty expense($50.000-$10.000) 40.000

Taxable income
$744.200

Depreciation for books ($300.000/5) =$60.000

Depreciation tax return ($300.000 X 30%) = 90.000

Difference $30.000

The income taxes payable for 2019 is as follows:

Taxable income $744.200

Tax rate 30%

Income taxes payable $223.000

The computation of the deferred income taxes for 2019 is as follows:

Temporary differences

Depreciation expense $(30.000 X 30% =$(9.000) DTL

Installment sales ($100.000 - $75.000) (25.000 X 30%= (7.500)DTL

 Warranty Expense ($50.000-$10.000) 40.000 X 30%= 12.000 DTA

B. The journal entry to record income taxes payable,income tax expese and deferrend
income taxes is a follow :
Income tax expense 227.760
Deferrend tax Asset 12.000
Deferred tax liability ($9.000+$7.500) 16.500
Income taxes payable 223.260
Deferred tax expense for 2019
(from deferred tax liability)($9.000+$7.500) $16.500
Deferred tax benefit for 2019
(from deferred tax asset) (12.000)
Net deferred tax expense for 2019 4.500
Current tax expese for 2019
(income taxes payable) 223.260
Income tax expese for 2019 $227.760