Company has the following information relating to their income taxes for a three-year period: Year 1 Year 2 Year 3 GAAP

[answerhappygod]

Company has the following information relating to their income
taxes for a three-year period:
Year 1
Year 2
Year 3
GAAP Net Income Before Odd Items
1,000
1,000
1,100
Non-Deductible Expenses (note 1)_
15
20
10
Depreciation Expense (note 2)
25
25
25
Rents Collected in Advance (note 3)
20
20
20
GAAP Net Income Before Tax
1,010
1,015
1,105
The tax rate is expected to be 20% for all
years.
Required
Year 1
Year 2
Year 3
Taxable Income
Income Tax Payable
Deferred Tax Liability
Deferred Tax Asset
Income Tax Expense
Journal Entry – Year 2
Date
Accounts
Debit
Credit
12-31-Year 2