The following is available for the taxable and pretax gaap financial income of film company for 2010:
a. Interest on municipal securities included in net income in 2010 was $5000.
b. Depreciation recognized in the tax return exceeded that in the financial statement income statement by S 100,000. This temporary difference will reverse evenly during 2011 and 2012.
The company has accrued revenue of $1 0,000 in 2010 for financial reporting purposes, however the tax laws allow them to deferred showing this as a taxable revenue until 2011 when the cash will be collected. Film's pretax GAAP financial net income for 2010 was and the company's income tax rate was 35%. This rate is scheduled to change to 40% for 2011 and 2012.
Required:
Prepare below a deferred income tax schedule for 2010. Show all timing differences in the appropriate year's column.