Prepare the journal entry to record 2015 income tax expense, income taxes payable

Prepare the journal entry to record 2015 income tax expense, income taxes payable, and deferred taxes. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Prepare the bottom portion of Gocker’s 2015 income statement, beginning with “Income before income taxes and extraordinary item.” (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)Indicate how deferred income taxes should be presented on the December 31, 2015, balance sheet.Indicate how deferred income taxes should be presented on the December 31, 2015, balance sheet.Gocker CorporationBalance SheetDecember 31, 2015 Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders’ EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders’ EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders’ Equity$Gocker CorporationBalance SheetDecember 31, 2015 Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders’ EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders’ EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders’ Equity$Gocker CorporationIncome Statement (Partial)Year ended December 31, 2015 Applicable Income TaxDividendsExpensesExtraordinary GainIncome before Extraordinary ItemIncome before Income Taxes and Extraordinary ItemIncome Tax Expense – CurrentIncome Tax Expense – DeferredNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues$ Applicable Income TaxDividendsExpensesExtraordinary GainIncome before Extraordinary ItemIncome before Income Taxes and Extraordinary ItemIncome Tax Expense – CurrentIncome Tax Expense – DeferredNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues$ Applicable Income TaxDividendsExpensesExtraordinary GainIncome before Extraordinary ItemIncome before Income Taxes and Extraordinary ItemIncome Tax Expense – CurrentIncome Tax Expense – DeferredNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues Applicable Income TaxDividendsExpensesExtraordinary GainIncome before Extraordinary ItemIncome before Income Taxes and Extraordinary ItemIncome Tax Expense – CurrentIncome Tax Expense – DeferredNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues Applicable Income Tax Dividends Expenses Extraordinary Gain Income before Extraordinary Item Income before Income Taxes and Extraordinary Item Income Tax Expense – Current Income Tax Expense – Deferred Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues Add Less : Applicable Income TaxDividendsExpensesExtraordinary GainIncome before Extraordinary ItemIncome before Income Taxes and Extraordinary ItemIncome Tax Expense – CurrentIncome Tax Expense – DeferredNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues Applicable Income TaxDividendsExpensesExtraordinary GainIncome before Extraordinary ItemIncome before Income Taxes and Extraordinary ItemIncome Tax Expense – CurrentIncome Tax Expense – DeferredNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues$Account Titles and ExplanationDebitCreditThe following information has been obtained for the Gocker Corporation.1.Prior to 2014, taxable income and pretax financial income were identical.2.Pretax financial income is $1,743,200 in 2014 and $1,414,100 in 2015.3.On January 1, 2014, equipment costing $1,308,000 is purchased. It is to be depreciated on a straightline basis over 5 years for tax purposes and over 8 years for financial reporting purposes. (Hint: Use the half-year convention for tax purposes, as discussed in Appendix 11A.)4.Interest of $60,900 was earned on tax-exempt municipal obligations in 2015.5.Included in 2015 pretax financial income is an extraordinary gain of $208,300, which is fully taxable.6.The tax rate is 40% for all periods.7.Taxable income is expected in all future years.Compute taxable income and income taxes payable for 2015.Taxable income$Income taxes payable$Prepare the journal entry to record 2015 income tax expense, income taxes payable, and deferred taxes. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)Account Titles and ExplanationDebitCredit