The pre-tax income statements for Moonstone Ltd. for two years (summarized) were as follows:
For tax purposes, the following income tax differences existed:
1. What was the accounting carrying value and tax basis for unearned revenue and the warranty liability at the end of 20X8 and 20X9? (Leave no cells blank - be certain to enter "0" wherever required.)
2. Compute (a) income tax payable, (b) deferred income tax, and (c) income tax expense for each period. Assume a tax rate of 30%. (Amounts to be deducted should be indicated by a minus sign.)
3. Give the entry to record income taxes for each period. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
4. Complete statements of profit and loss to include income taxes expense.
5. What amount of deferred income tax will be reported on the statement of financial position at each year-end?
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