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Flint Corporation began operations in 2020 and reported pretax financial income of $234,000 for the year. Flint's tax depreciation exceeded its book depreciation by $36,000. Flint's tax rate for 2020 and years thereafter is 30%. Assume this is the only difference between Flint's pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (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 O for the amounts.) Account Titles and Explanation Debit Credit Show how the deferred tax liability will be classified on the December 31, 2020, balance sheet. Deferred tax liability should be classified as a ✓ on the December 31, 2020, balance sheet.

Flint Corporation began operations in 2020 and reported pretax financial income of $234,000 for the year. Flint's tax depreciation exceeded its book depreciation by $36,000. Flint's tax rate for 2020 and years thereafter is 30%. Assume this is the only difference between Flint's pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (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 O for the amounts.) Account Titles and Explanation Debit Credit Show how the deferred tax liability will be classified on the December 31, 2020, balance sheet. Deferred tax liability should be classified as a ✓ on the December 31, 2020, balance sheet.

FINANCIAL ACCOUNTING
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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Flint Corporation began operations in 2020 and reported pretax financial income of $234,000 for the year. Flint's tax depreciation exceeded its book depreciation by $36,000. Flint's tax rate for 2020 and years thereafter is 30%. Assume this is the only difference between Flint's pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (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 O for the amounts.) Account Titles and Explanation Debit Show how the deferred tax liability will be classified on the December 31, 2020, balance sheet. Deferred tax liability should be classified as a Credit ✓ on the December 31, 2020, balance sheet.
Transcribed Image Text:Flint Corporation began operations in 2020 and reported pretax financial income of $234,000 for the year. Flint's tax depreciation exceeded its book depreciation by $36,000. Flint's tax rate for 2020 and years thereafter is 30%. Assume this is the only difference between Flint's pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (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 O for the amounts.) Account Titles and Explanation Debit Show how the deferred tax liability will be classified on the December 31, 2020, balance sheet. Deferred tax liability should be classified as a Credit ✓ on the December 31, 2020, balance sheet.
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