At the Beginning of the Current Fiscal Year,Withering Corporation Had

question 84

Essay

At the beginning of the current fiscal year,Withering Corporation had a deferred income tax liability balance of $20,000,which relates to depreciable assets.During the year,Withering reported the following information:
• Income before income taxes for the year was $300,000 and the tax rate was 45%.
• Depreciation expense was $150,000 and CCA was $130,000.
• Unearned rent revenue was reported at $120,000.Rent revenue is taxable when the cash is received.There was no opening balance in the unearned rent revenue account at the beginning of the year.
• No other items affected deferred tax amounts other than these transactions.
Requirement:
Prepare the journal entry or entries to record income taxes for the year.

---

Definitions:

Skill-based Pay

A compensation system that rewards employees for their skills and knowledge, rather than their job title or position.

Objective

Something that one's efforts or actions are intended to attain or accomplish; purpose; goal; target.

Measurable Performance

Refers to the ability to quantify or assess the effectiveness or output of an employee, project, or organization.

Skill-based Pay Plan

A compensation strategy where employees are paid based on the skills and knowledge they possess, rather than their job position or title.