[Anonymous]

Help!!

Has anyone noticed the skills example in Becker review Module 6 – Income Tax Part 1 seems off. I’ve been looking at videos and their journal entry for a deferred tax asset is different then what I’m seeing in other examples/ lectures. Examples below show how other lectures record a deferred tax asset and how Becker is recording it. I think Becker’s is wrong. In both examples, assume taxable income is $100 and book income is $70 with a tax rate of 40%

Others:

Income tax expense 28
Deferred tax asset 12
Income tax payable 40

Becker:

Income tax expense – current 40
Deferred tax asset 12
Income tax payable 40
Income tax benefit – deferred 12

I believe there is an duplicate entry ( income tax benefit – deferred) which is essentially the same as the deferred tax asset.