Question

Income tax payable is calculated as Select one: O a. Taxable income multiplied by the enacted tax rate. O b. Financial income multiplied by the effective tax rate. O c. Taxable income multiplied by the effective tax rate. O d. Financial income multiplied by the enacted tax rate. Clear my choice Santiago Corp. has 100,000 common shares outstanding with par value of $15 per share. On January 15, 2014, Santiago declares a 3-for-2 stock split. On March 1st, 2014, the company distributes the new shares to its shareholders, Santiago needs to record a journal entry for Select one: O a. The declaration of the stock split only b. The distribution of the new shares only O c. Neither the declaration of the stock split nor the distribution of the new shares. O d. Both the declaration of the stock split and the distribution of the new shares Clear my choice At the end of 2019. Delta Corporation had a deferred tax asset of $20,000. What entry is required if it is more likely than not that 59,000 of that deferred tax asset will NOT be realized? Select one O a. Debit income tax expense $9,000, credit deferred tax asset $9,000 O b. Debit income tax payable $9,000, credit allowance for deferred tax asset $9,000 c. Debit income tax expense $9,000, credit allowance for deferred tax asset $9.000 O d. Debit income tax payable $9,000, credit deferred tax asset $9,000 Clear my choice When it is more likely than not that a portion or all of a deferred tax asset may not be realized, the company should recognize Select one: O a. A deferred tax liability b. Income tax expense O c Income tax payable O d. A valuation allowance Clear my choice