2.
During 2015, GGG Co.'s first year of operations, the company reports pretax financial income of £250,000.
GGG's enacted tax rate is 40% for 2015, 35% for 2016, and 30% for all later years. GGG expects to have
taxable income in each of the next 5 years. The effects on future tax returns of temporary differences existing
at December 31, 2015, are summarized below.
Instructions
【題組】(d) Assuming that the company reports pretax financial income of £200,000 in 2016, prepare the journal
entry to record income taxes payable, deferred taxes, and income tax expense for 2016.