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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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