Ivanhoe Inc., in its first year of operations, has the following differences between the book basis and tax basis of its assets and liabilities at the end of 2019. Book Basis Tax Basis
Equipment (net) $431,000 $371,100
Estimated warranty liability $192,000$ -0-

It is estimated that the warranty liability will be settled in 2020. The difference in equipment (net) will result in taxable amounts of $19,100 in 2020, $30,600 in 2018, and $10,300 in 2019. The company has taxable income of $470,000 in 2018. As of the beginning of 2016, the enacted tax rate is 34% for 2018-2020, and 30% for 2019, Vaughn expects to report taxable income through 2019.

Required:
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2018.

Larkspur Inc.

Particulars                                     2018       2019      2019       Total  

Temporary difference giving    $30,600  $10,300  $19,100  

rise to future taxable amount

Enacted tax rate                            34%        30%        34%

Deferred tax liability                   $10,404  $3,090    $6,494   $19,988

Temporary diff. giving rise to    $192,000   $0           $0

future deductible amount

Deferred tax assets                    $65,280    $0           $0        $65,280

Journal Entries - Larkspur Inc.  

Income tax expense Dr$114,508

Deferred tax assets Dr$65,280

        To Income tax payable Cr. $159,800 ($470,000*34%)

        To Deferred tax liability Cr. $19,988

(To record income tax and deferred tax)

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.