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 O for the amounts.) Account Titles and Explanation Debit I Credit
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 O for the amounts.) Account Titles and Explanation Debit I Credit
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 14P
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Question
![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 O for the amounts.)
Account Titles and Explanation
Debit
I
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2736f8c4-7a30-4ba2-b9fa-a9e9331eee78%2F062e96ab-f647-487b-9b50-5a6623676e90%2Fejjf0k_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 O for the amounts.)
Account Titles and Explanation
Debit
I
Credit
![Pina Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable amounts of $52,500 in 2021.
$57,500 in 2022, and $62,200 in 2023. Pina's pretax financial income for 2020 is $278,800, and the tax rate is 30% for all years. There
are no deferred taxes at the beginning of 2020.
(a)
Your answer is correct.
Compute taxable income and income taxes payable for 2020.
Taxable income
Income taxes payable. $
106600
31980](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2736f8c4-7a30-4ba2-b9fa-a9e9331eee78%2F062e96ab-f647-487b-9b50-5a6623676e90%2Fwjt6k57_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Pina Corporation has one temporary difference at the end of 2020 that will reverse and cause taxable amounts of $52,500 in 2021.
$57,500 in 2022, and $62,200 in 2023. Pina's pretax financial income for 2020 is $278,800, and the tax rate is 30% for all years. There
are no deferred taxes at the beginning of 2020.
(a)
Your answer is correct.
Compute taxable income and income taxes payable for 2020.
Taxable income
Income taxes payable. $
106600
31980
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