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Account Titles and Explanation Debit Credit Income Tax Expense 149,000 Deferred Tax Asset 15,000 Income Tax Payable 164,000 (To record income tax expense) Allowance to Reduce Defer 22500 Income Tax Expense 22500 (To adjust allowance account) (b) Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not that none of the deferred tax asset will be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense 149,000 [Deferred Tax Asset 15,000 Income Tax Payable 164,000 (To record income tax expense) Income Tax Expense 30000 Allowance to Reduce De 32800 (To record allowance)

Account Titles and Explanation Debit Credit Income Tax Expense 149,000 Deferred Tax Asset 15,000 Income Tax Payable 164,000 (To record income tax expense) Allowance to Reduce Defer 22500 Income Tax Expense 22500 (To adjust allowance account) (b) Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not that none of the deferred tax asset will be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense 149,000 [Deferred Tax Asset 15,000 Income Tax Payable 164,000 (To record income tax expense) Income Tax Expense 30000 Allowance to Reduce De 32800 (To record allowance)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jennifer Capriati Corp. has a deferred tax asset account with a balance of $75,000 at the end of 2019 due to a single cumulative temporary difference of $375,000. At the end of 2020, this same temporary difference has increased to a cumulative amount of $450,000. Taxable income for 2020 is $820,000. The tax rate is 20% for all years. At the end of 2019, Jennifer Capriati Corp. had a valuation account related to its deferred tax asset of $22,500.

(b) Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not that none of the deferred tax asset will be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

 

Account Titles and Explanation Debit Credit Income Tax Expense 149,000 Deferred Tax Asset 15,000 Income Tax Payable 164,000 (To record income tax expense) Allowance to Reduce Defer 22500 Income Tax Expense 22500 (To adjust allowance account)
Transcribed Image Text:Account Titles and Explanation Debit Credit Income Tax Expense 149,000 Deferred Tax Asset 15,000 Income Tax Payable 164,000 (To record income tax expense) Allowance to Reduce Defer 22500 Income Tax Expense 22500 (To adjust allowance account)
(b) Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not that none of the deferred tax asset will be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense 149,000 [Deferred Tax Asset 15,000 Income Tax Payable 164,000 (To record income tax expense) Income Tax Expense 30000 Allowance to Reduce De 32800 (To record allowance)
Transcribed Image Text:(b) Record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming that it is more likely than not that none of the deferred tax asset will be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Income Tax Expense 149,000 [Deferred Tax Asset 15,000 Income Tax Payable 164,000 (To record income tax expense) Income Tax Expense 30000 Allowance to Reduce De 32800 (To record allowance)
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