26. Kana is a single wage earner with no dependents and taxable income of $168,700 in 2020. Her 2019 taxable income was $155,000 and tax liability was $31, 375. Calculate the following (note: thisquestion requires the use of the tax tables in Appendix A): Kana's 2020 income tax liability Kana's minimum required 2020 annual payment necessary to avoid penalty

The minimum required annual payment of tax represents the minimum amount a taxpayer must pay…

Answered: ): Kana's 2020 income tax liability…

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): Kana's 2020 income tax liability Kana's minimum required 2020 annual payment necessary to avoid penalty

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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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

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26. Kana is a single wage earner with no dependents and taxable income of $168,700 in 2020. Her 2019 taxable income was $155,000 and tax liability was $31, 375. Calculate the following (note: this
question requires the use of the tax tables in Appendix A): Kana's 2020 income tax liability Kana's minimum required 2020 annual payment necessary to avoid penalty

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