Ivanhoe Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $811,000 $932,000 $992,000 Excess depreciation expense on tax return (31,500 ) (39,100 ) (9,900 ) Excess warranty expense in financial income 19,900 9,800 8,300 Taxable income $799,400 $902,700 $990,400 The income tax rate for all years is 20%. Prepare the income tax expense section of the income statement for 2022, beginning with the line “Pretax financial income.”
Ivanhoe Company has the following two temporary differences between its income tax expense and income taxes payable. 2020 2021 2022 Pretax financial income $811,000 $932,000 $992,000 Excess depreciation expense on tax return (31,500 ) (39,100 ) (9,900 ) Excess warranty expense in financial income 19,900 9,800 8,300 Taxable income $799,400 $902,700 $990,400 The income tax rate for all years is 20%. Prepare the income tax expense section of the income statement for 2022, beginning with the line “Pretax financial income.”
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ivanhoe Company has the following two temporary differences between its income tax expense and income taxes payable.
|
2020
|
2021
|
2022
|
|||||||
| Pretax financial income |
$811,000
|
$932,000
|
$992,000
|
||||||
| Excess |
(31,500
|
)
|
(39,100
|
)
|
(9,900
|
)
|
|||
| Excess warranty expense in financial income |
19,900
|
9,800
|
8,300
|
||||||
| Taxable income |
$799,400
|
$902,700
|
$990,400
|
The income tax rate for all years is 20%.
Prepare the income tax expense section of the income statement for 2022, beginning with the line “Pretax financial income.”
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