Current Attempt in Progress Carla Vista Inc. has two temporary differences at the end of 2024. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Carla Vista's accounting department has developed a schedule of future taxable and deductible amounts related to these temporary differences as follows. 2025 2026 2027 2028 Taxable amounts $43,300 $50,800 $56,700 $86,600 Deductible amounts (14,300) (18,500) $43,300 $36,500 $38,200 $86,600 As of the beginning of 2024, the enacted tax rate is 34% for 2024 and 2025, and 20% for 2026-2029. At the beginning of 2024, the company had no deferred income taxes on its balance sheet. Taxable income for 2024 is $473,000. Taxable income is expected in all future years. (a) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (List all debit entries before credit entries. 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
Current Attempt in Progress Carla Vista Inc. has two temporary differences at the end of 2024. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Carla Vista's accounting department has developed a schedule of future taxable and deductible amounts related to these temporary differences as follows. 2025 2026 2027 2028 Taxable amounts $43,300 $50,800 $56,700 $86,600 Deductible amounts (14,300) (18,500) $43,300 $36,500 $38,200 $86,600 As of the beginning of 2024, the enacted tax rate is 34% for 2024 and 2025, and 20% for 2026-2029. At the beginning of 2024, the company had no deferred income taxes on its balance sheet. Taxable income for 2024 is $473,000. Taxable income is expected in all future years. (a) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (List all debit entries before credit entries. 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Current Attempt in Progress
Carla Vista Inc. has two temporary differences at the end of 2024. The first difference stems from installment sales, and the second
one results from the accrual of a loss contingency. Carla Vista's accounting department has developed a schedule of future taxable and
deductible amounts related to these temporary differences as follows.
2025
2026
2027
2028
Taxable amounts
$43,300
$50,800 $56,700 $86,600
Deductible amounts
(14,300) (18,500)
$43,300
$36,500 $38,200 $86,600
As of the beginning of 2024, the enacted tax rate is 34% for 2024 and 2025, and 20% for 2026-2029. At the beginning of 2024, the
company had no deferred income taxes on its balance sheet. Taxable income for 2024 is $473,000. Taxable income is expected in all
future years.
(a)
Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2024. (List all
debit entries before credit entries. 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
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