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    Accounting

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    ABC Corporation prepared the following reconciliation for its first year of operations:
    Pretax financial income for 2008 $ 900,000
    Tax exempt interest (75,000)
    Originating temporary difference (225,000)
    Taxable income $600,000
    The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 2008 is 35%.

    63. What amount should be reported in its 2008 income statement as the deferred portion of the provision for income taxes?
    a. $90,000 debit
    b. $120,000 debit
    c. $90,000 credit
    d. $105,000 credit

    64. In ABC's 2008 income statement, what amount should be reported for total income tax expense?
    a. $330,000
    b. $315,000
    c. $300,000
    d. $210,000

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    https://brainmass.com/business/accounting/accounting-147146

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