Exercise 19-04 (Part Level Submission) Kingbird Company reports pretax financial income of $73,500 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $17,600. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $19,900. 3. Fines for pollution appear as an expense of $10,500 on the income statement. Kingbird’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.
Exercise 19-04 (Part Level Submission) Kingbird Company reports pretax financial income of $73,500 for 2020. The following items cause taxable income to be different than pretax financial income. 1. Depreciation on the tax return is greater than depreciation on the income statement by $17,600. 2. Rent collected on the tax return is greater than rent recognized on the income statement by $19,900. 3. Fines for pollution appear as an expense of $10,500 on the income statement. Kingbird’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 19-04 (Part Level Submission)
Kingbird Company reports pretax financial income of $73,500 for 2020. The following items cause taxable income to be different than pretax financial income.
Kingbird’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are nodeferred taxes at the beginning of 2020.
| 1. | ||
| 2. | Rent collected on the tax return is greater than rent recognized on the income statement by $19,900. | |
| 3. | Fines for pollution appear as an expense of $10,500 on the income statement. |
Kingbird’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no
Transcribed Image Text:- (c)
Prepare the income tax expense section of the income statement for 2020, beginning with the line "Income before income taxes." (Enter negative amounts using
either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Kingbird Company
Income Statement (Partial)
For the Year Ended December 31, 2020
Income before Income Taxes
73500
Income Tax Expense
Current
25890
Deferred
Net Income / (Loss)
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