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dasee
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Joined: 03 Jun 2010
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Posted: 17 Aug 2010 at 12:40 \| IP Logged

Hi, divyagovil1. Your response was very helpful to me, thank you. So would this be the correct journal entry to the Quinn problem?

Dr. Income tax expense - Current...................60,000
Dr. Income tax expense - Deferred..................30,000
Cr. Deferred tax liability.......................................30,000
Cr. Income tax payable........................................60,000

Also, are 'Income tax expense - Deferred' and 'Deferred tax liability' always the same amount? I noticed that they are in all of the Becker text book examples. Thank you.

Ai need help
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Posted: 16 Oct 2010 at 13:38 \| IP Logged

what does the term "cummulative temporary difference" mean?

PFgirl
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Posted: 19 Oct 2010 at 17:59 \| IP Logged

Cumulative temporary difference means uptodate liability amount. think like that, all account on B/S is the cummulatvie amount (ending balance)
Like A/P liability to pay.

#3: $6m is the begining liaiblity balance, $1,8m is accrual liaibility when sales happen (80% cost), $2.7m is provide service(reduce liability)

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