AC 302 WEEK 3 Exercise 19 Question 1
South Carolina Corporation has one temporary difference at the end of 2014 that will reverse and cause taxable amounts of $57,090 in 2015, $61,950 in 2016, and $67,324 in 2017. South Carolina- pretax financial income for 2014 is $349,800, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2014.
Your answer is correct.
(a) Compute taxable income and income taxes payable for 2014.
Taxable income $
Income taxes payable $
(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Account Titles and Explanation Debit Credit
USA 
India
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