Slide ShowRecordReviewViewHelpDeferred Tax Liability 2021Comparison of Differences202020212022TotalIncome tax expense (GAAP)Income tax payable (IRS)DifferenceDunkin makes the following entry at the end of 2021 to recordincome taxes.DateGeneral JournalDebitCreditLO 1Copyright ©2019 John Wiley & Sons, Inc.스NotesENGINTLCF5F6F7F8PrtScDelF9F10F11F12InsOF88 P Search (Alt +Q)Shawn SmithSSmationsSlide ShowRecordReviewViewHelpRecordAccounting 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?NotesENGINTL

The effect of the difference between the income tax reported in the books as per GAPP and the income…

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?

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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