Kingbird Corporation began 2020 with a $55,200 balance in the Deferred Tax Liability account. At the end of 2020, the related cumulative temporary difference amounts to $420,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $630,000, the tax rate for all years is 20%, and taxable income for 2020 is $486,000.     A. Compute income taxes payable for 2020. Income taxes payable   $ B. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (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 0 for the amounts.) C. Prepare the income tax expense section of the income statement for 2020 beginning with the line “Income before income taxes.”. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

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A:

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Q: Shamrock Corporation reported the following income for each of the years indicated. For each year,…

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Q: Wittco Company reports pretax GAAP income in 2020, its first year of operations, of $180,000.…

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A:

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A: Part 1:

Q: Tamarisk Corporation began 2020 with a $50,600 balance in the Deferred Tax Liability account. At the…

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A: Pretax accounting income = Taxable income + Installment sales = $472,000 + $49,000 = $521,000

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A: Formulas:

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A: Tax Rate = 20% Taxable Income for 2020 = $348,300

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.