APB #11
Tax expense (Income Statement)
(Book income +/- permanent differences) x enacted rate
($30,000 + $200) x .34 = $10,268*
Tax Payable (Balance Sheet)
Taxable income x enacted rate
$28,250 x .34 = $9,605*
* Difference is $10,268 - $9,605 = $663 which represents taxes to be paid in the future.