Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020. (Creditaccount titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for theaccount titles and enter O for the amounts.)Account Titles and ExplanationIncome Tax ExpenseIncome Tax PayableDeferred Tax LiabilityeTextbook and Media.List of AccountsSave for LaterDebit119700Credit18468101232Attempts: 2 of 3 used Submit Answer(c)The parts of this question must be completed in order. This part will be available when you complete the part above. Question 1 of 4View PoliciesShow Attempt HistoryCurrent Attempt in ProgressWildhorse Corporation began 2020 with a $52,440 balance in the Deferred Tax Liability account. At the end of 2020, the relatedcumulative temporary difference amounts to $399,000, and it will reverse evenly over the next 2 years. Pretax accounting income for2020 is $598,500, the tax rate for all years is 20%, and taxable income for 2020 is $461,700.(a)Your answer is correct.Compute income taxes payable for 2020.Income taxes payable i$92340

Income tax payable = Taxable income × Tax rate

Show Attempt History. Current Attempt in Progress Wildhorse Corporation began 2020 with a $52,440 balance in the Deferred Tax Liability account. At the end of 2020, the related cumulative temporary difference amounts to $399,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $598,500, the tax rate for all years is 20%, and taxable income for 2020 is $461,700. (a) Your answer is correct. muable for 2020

Show Attempt History. Current Attempt in Progress Wildhorse Corporation began 2020 with a $52,440 balance in the Deferred Tax Liability account. At the end of 2020, the related cumulative temporary difference amounts to $399,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $598,500, the tax rate for all years is 20%, and taxable income for 2020 is $461,700. (a) Your answer is correct. muable for 2020

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Blossom Corporation began 2020 with a $57,040 balance in the Deferred Tax Liability account. At the end of 2020, the related cumulative temporary difference amounts to $434,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $651,000, the tax rate for all years is 20%, and taxable income for 2020 is $502,200. Compute income taxes payable for 2020. Income taxes payable $enter Income taxes payable in dollars 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.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount…
Blossom Corporation reported the following results for its first three years of operation: 2020 income (before income taxes) $280000 2021 loss (before income taxes) (2500000 ) 2022 income (before income taxes) 2800000 There were no permanent or temporary differences during these three years. Assume a corporate tax rate of 20% for 2020 and 2021, and 30% for 2022.Assuming that Blossom elects to use the carryback provision, what income (loss) is reported in 2021? (Assume that any deferred tax asset recognized is more likely than not to be realized.)
The following information is available for Marigold Corporation for 2020. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $114,000. This difference will reverse in equal amounts of $28,500 over the years 2021-2024. Interest received on municipal bonds was $10,200. Rent collected in advance on January 1, 2020, totaled $61,800 for a 3-year period. Of this amount, $41.200 was reported as unearned at December 31, 2020, for book purposes. 1. 2. 3. 5. 6. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. Income taxes of $308,000 are due per the tax return for 2020. No deferred taxes existed at the beginning of 2020. ? Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2020 and 2021. Assume taxable income was $1,065,000 in 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"…
The following information is available for Sandhill Corporation for 2019 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $40,400. This $40,400 difference will reverse equally over the years 2020–2023. 2. Deferral, for book purposes, of $19,900 of rent received in advance. The rent will be recognized in 2020. 3. Pretax financial income, $284,700. 4. Tax rate for all years, 20%.
At December 31, 2025, Pronghorn Corporation had a deferred tax liability of $353,600, resulting from future taxable amounts of $2,080,000 and an enacted tax rate of 17%. In May 2026, a new income tax act is signed into law that raises the tax rate to 20% for 2026 and future years. Prepare the journal entry for Pronghorn to adjust the deferred tax liability. (List debit entry before credit entry. 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 eTextbook and Media List of Accounts Save for Later Debit Credit Attempts: 0 of 3 used Submit Answer
Shwonson Industries reported a deferred tax asset of $5 million for the year ended December 31, 2020, related to a temporary difference of $20 million. The tax rate was 25%. The temporary difference is expected to reverse in 2022, at which time the deferred tax asset will reduce taxable income. There are no other temporary differences in 2020–2022. Assume a new tax law is enacted in 2021 that causes the tax rate to change from 25% to 15% beginning in 2022. (The rate remains 25% for 2021 taxes.) Taxable income in 2021 is $30 million.Required:Determine the effect of the tax rate change and prepare the appropriate journal entry to record Shwonson’s income tax expense in 2021. What effect, if any, will enacting the change in the 2022 tax rate have on Shwonson’s 2021 net income?
Carla Vista Corporation began 2025 with a $54,280 balance in the Deferred Tax Liability account. At the end of 2025, the related cumulative temporary difference amounts to $413,000, and it will reverse evenly over the next two years. Pretax accounting income for 2025 is $619,500 , the tax rate for all years is 20%, and taxable income for 2025 is $477,900. Compute income taxes payable for 2025
Indigo Corporation began operations in 2020 and reported pretax financial income of $234,000 for the year. Indigo’s tax depreciation exceeded its book depreciation by $33,000. Indigo’s tax rate for 2020 and years thereafter is 30%. In its December 31, 2020, balance sheet, what amount of deferred tax liability should be reported?
J-Matt, Inc., had pretax accounting income of $331,000 and taxable income of $376,000 in 2021. The only difference between accounting and taxable income is estimated product warranty costs of $45,000 for sales in 2021. Warranty payments are expected to be in equal amounts over the next three years (2022–2024) and will be tax deductible at that time. Recent tax legislation will change the tax rate from the current 25% to 20% in 2023. Determine the amounts necessary to record J-Matt’s income taxes for 2021 and prepare the appropriate journal entry.
Foster Company reported pretax financial income of $350,000 for 2021. Foster uses an accelerated form of depreciation for tax purposes, and it exceeds book depreciation by $50,000. The tax rate for 2021 is 20%. Record the journal entry at the end of 2021, be sure to include calculations, as well as income tax expense, a deferred account, and income tax payable.
The following information is available for Oriole Corporation for 2025. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $114,000. This difference will reverse in equal amounts of $28,500 over the years 2026-2029. Interest received on municipal bonds was $10,200. Rent collected in advance on January 1, 2025, totaled $61,800 for a 3-year period. Of this amount, $41,200 was reported as unearned at December 31, 2025, for book purposes. 2. 3. 4. The tax rates are 20% for 2025 and 17% for 2026 and subsequent years. 5. Income taxes of $154,000 are due per the tax return for 2025. 6. No deferred taxes existed at the beginning of 2025 (a) (b) (c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2025 and 2026. Assume taxable income was $426,000 in 2026. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not…
Skysong Corporation began operations in 2025 and reported pretax financial income of $212,000 for the year. Skysong's tax depreciation exceeded its book depreciation by $33,000. Skysong's tax rate for 2025 and years thereafter is 30%. Assume this is the only difference between Skysong's pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (List all debit entries before credit entries. 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 Show how the deferred tax liability will be classified on the December 31, 2025, balance sheet. Deferred tax liability should be classified as a Debit to search Credit on the December 31, 2025, balance sheet.