Final answer:
In a journal entry for deferred taxes, one would include the change in deferred tax asset or liability, income tax payable, and income tax expense or benefit. Income tax receivable might be included in specific cases, whereas the net income amount is affected by these entries but not included directly.
Step-by-step explanation:
The journal entries for deferred taxes typically reflect the adjustments made to align the company's accounting income with its taxable income. When creating a journal entry for deferred taxes, you would typically include the following:
- a. Change in deferred tax asset or liability: This reflects the adjustment needed if the amount of taxes payable in future periods will increase or decrease as a result of timing differences.
- b. Income tax payable: This is the current tax liability owed to the taxing authorities.
- c. Income tax receivable: This might represent the amount of tax overpaid or refundable.
- d. Net income amount: This is not directly included in the deferred tax entry but is affected by income tax expense.
- e. Income tax expense or benefit: This includes both the current tax expense or benefit and any deferred tax expense or benefit.
Selections a, b, and e are directly included in a journal entry for deferred taxes, while c might be included under specific circumstances, and d is not included but is consequential of the journal entry recorded.