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Leona Corporation earns book Net Income before tax of $400,000 for the current tax year. Leona...

Leona Corporation earns book Net Income before tax of $400,000 for the current tax year. Leona Corporation places into service a depreciable asset during the current tax year and the first-year tax depreciation exceeds book depreciation by $80,000. Leona Corporation has recorded no other temporary or permanent book-tax differences. Assuming that the US tax rate is 30% for the current tax year.

Required:

Determine Leona Corporation’s Income Tax Payable, Current (and Deferred) Income Tax Expense reported on its GAAP Financial Statements and prepare the Journey Entry on its GAAP Financial Statements to record these item (ie. DEFERRED TAX LIABILITY/ DEFERRED TAX ASSET

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