1. 2. 3. 5. 6. 7. 8. Deferred tax liability, January 1, 2020, $48,000. Deferred tax asset, January 1, 2020, $0. Taxable income for 2020, $114,000. Pretax financial income for 2020, $120,000. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $288,000. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $42,000. Tax rate for all years, 20%. The company is expected to operate profitably in the future. Your answer is correct. Compute income taxes payable for 2020. Income taxes payable $ 22800
1. 2. 3. 5. 6. 7. 8. Deferred tax liability, January 1, 2020, $48,000. Deferred tax asset, January 1, 2020, $0. Taxable income for 2020, $114,000. Pretax financial income for 2020, $120,000. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $288,000. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $42,000. Tax rate for all years, 20%. The company is expected to operate profitably in the future. Your answer is correct. Compute income taxes payable for 2020. Income taxes payable $ 22800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1.Please Complete Solution With Details
2.Final Answer Clearly Mentioned
3.Do not give solution in image format
Transcribed Image Text:Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Credi
account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" fo
account titles and enter O for the amounts.)
Account Titles and Explanation
Income Tax Expense
Deferred Tax Asset
Deferred Tax Liability
Income Tax Payable
Debit
32400
0
Credit
9600
22800
Transcribed Image Text:Deferred tax liability, January 1, 2020, $48,000.
Deferred tax asset, January 1, 2020, $0.
Taxable income for 2020, $114,000.
Pretax financial income for 2020, $120,000.
Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $288,000.
6. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $42,000.
Tax rate for all years, 20%.
The company is expected to operate profitably in the future.
2
3.
4.
5.
7.
8.
Your answer is correct.
Compute income taxes payable for 2020.
Income taxes payable
SA
22800
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