Shawn SmithP Search (Alt+Q)RecordReviewViewHelpSlīde ShowDeferred Tax Liability 2020202020212022TotalComparison of DifferencesIncome tax expense (GAAP)Income tax payable (IRS)DifferenceDunkin makes the following entry at the end of 2020 to recordincome taxes.General JournalDebitCreditDateLO 1Copyright ©2019 John Wiley & Sons, Inc.스 NotesENGINTL p Search (Alt+Q)Shawn Smith55imationsSlīde ShowRecordReviewView HelpOReAccounting for Income TaxesDunkin, Inc. reported revenues of $150,000 and expenses of$70,000 in each of its first three years of operations. For taxpurposes, Dunkin reported the same expenses to the IRS ineach of the years. Dunkin reported taxable revenues of$120,000 in 2020, $160,000 in 2021, and $170,000 in 2022.What is the effect on the accounts of reporting differentamounts of revenue for GAAP versus tax?ENotes88ENGCF5F6F7PrtScDeF8F9F10F11F12Ins

Lets understand the basics. When there is difference between the tax expense as per accounts and as…

Accounting for Income Taxes Dunkin, Inc. reported revenues of $150,000 and expenses of $70,000 in each of its first three years of operations. For tax purposes, Dunkin reported the same expenses to the IRS in each of the years. Dunkin reported taxable revenues of $120,000 in 2020, $160,000 in 2021, and $170,000 in 2022. What is the effect on the accounts of reporting different amounts of revenue for GAAP versus tax?

Accounting for Income Taxes Dunkin, Inc. reported revenues of $150,000 and expenses of $70,000 in each of its first three years of operations. For tax purposes, Dunkin reported the same expenses to the IRS in each of the years. Dunkin reported taxable revenues of $120,000 in 2020, $160,000 in 2021, and $170,000 in 2022. What is the effect on the accounts of reporting different amounts of revenue for GAAP versus tax?

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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