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