At the end of 2019, Riverbed Company has $181,900 of cumulative temporary differences that will result in reporting the following future taxable amounts. 2020 2021 2022 2023 $61,000 49,700 41,800 29,400 $181,900 Tax rates enacted as of the beginning of 2018 are: 2018 and 2019 2020 and 2021 2022 and later 40 % 30 % 25 % Riverbed's taxable income for 2019 is $315,000. Taxable income is expected in all future years. (a) Prepare the journal entry for Riverbed to record income taxes payable, deferred income taxes, and income tax expense for 2019,
At the end of 2019, Riverbed Company has $181,900 of cumulative temporary differences that will result in reporting the following future taxable amounts. 2020 2021 2022 2023 $61,000 49,700 41,800 29,400 $181,900 Tax rates enacted as of the beginning of 2018 are: 2018 and 2019 2020 and 2021 2022 and later 40 % 30 % 25 % Riverbed's taxable income for 2019 is $315,000. Taxable income is expected in all future years. (a) Prepare the journal entry for Riverbed to record income taxes payable, deferred income taxes, and income tax expense for 2019,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:At the end of 2019, Riverbed Company has $181,900 of cumulative temporary differences that will result in reporting the following
future taxable amounts.
2020
2021
2022
2023
$61,000
49,700
41,800
29,400
$181,900
Tax rates enacted as of the beginning of 2018 are:
2018 and 2019
2020 and 2021
2022 and later
40 %
30 %
25 %
Riverbed's taxable income for 2019 is $315,000. Taxable income is expected in all future years.
(a) Prepare the journal entry for Riverbed to record income taxes payable, deferred income taxes, and income tax expense for 2019,
assuming that there were no deferred taxes at the end of 2018. (Credit account titles are automatically indented when amount is entered.
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