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For the year ended December 31 2014 Tyre Company reported pre tax financial statement income of $750000 Its taxable income was $650000 The difference was due to the use of accelerated

For the year ended December 31, 2014, Tyre Company reported pre-tax financial statement income of $750,000. Its taxable income was $650,000. The difference was due to the use of accelerated depreciation for income tax purposes and straight-line for financial reporting. Tyre’s income tax rate is 30%, and it made estimated tax payments of $90,000 during 2014.

Required:

1. What amount should Tyre report as the current portion of income tax expense for 2014?

2. What amount should Tyre report as the deferred portion of income tax expense for 2014?

3. Give the journal entry Tyre would make to record 2014 taxes.

Apr 23 2020 View more View Less

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