CJM provided the following data related to income tax allocation: The deferred income tax account showed a zero balance at the start of 2013.There was only one temporary difference,an expense,which was deductible for tax purposes in 2013,but was recorded for accounting purposes in 2014.There are no carry backs or carry forwards and no originating temporary differences in 2014.The journal entry to record the income tax consequences for 2014 would include a:
A) Debit of $102 to CJM's deferred income tax liability account.
B) Credit of $102 to CJM's deferred income tax liability account.
C) Debit of $102 to CJM's deferred income tax asset account.
D) Credit of $102 to CJM's deferred income tax asset account.

Question

CJM provided the following data related to income tax allocation:  The deferred income tax account showed a zero balance at the start of 2013.There was only one temporary difference,an expense,which was deductible for tax purposes in 2013,but was recorded for accounting purposes in 2014.There are no carry backs or carry forwards and no originating temporary differences in 2014.The journal entry to record the income tax consequences for 2014 would include a:
A) Debit of $102 to CJM's deferred income tax liability account. 
B) Credit of $102 to CJM's deferred income tax liability account. 
C) Debit of $102 to CJM's deferred income tax asset account. 
D) Credit of $102 to CJM's deferred income tax asset account.

Quizplus · Accepted Answer

The Answer of CJM provided the following data related to income tax allocation:  The deferred income tax account showed a zero balance at the start of 2013.There was only one temporary difference,an expense,which was deductible for tax purposes in 2013,but was recorded for accounting purposes in 2014.There are no carry backs or carry forwards and no originating temporary differences in 2014.The journal entry to record the income tax consequences for 2014 would include a:
A) Debit of $102 to CJM's deferred income tax liability account. 
B) Credit of $102 to CJM's deferred income tax liability account. 
C) Debit of $102 to CJM's deferred income tax asset account. 
D) Credit of $102 to CJM's deferred income tax asset account.

CJM Provided the Following Data Related to Income Tax Allocation