Force Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable amounts of $36,000 in 2021, $45,500 in 2022, and $50,000 in 2023. Force's pretax financial income for 2020 is $196,000, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2020. 1. Compute taxable income and income taxes payable for 2020. 2. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.

Force Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable amounts of $36,000 in 2021, $45,500 in 2022, and $50,000 in 2023. Force's pretax financial income for 2020 is $196,000, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2020. 1. Compute taxable income and income taxes payable for 2020. 2. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020.

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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