Tamarisk Corporation began 2020 with a $50,600 balance in the Deferred Tax Liability account. At the end of 2020, the related cumulative temporary difference amounts to $385,000, and it will reverse evenly over the next 2 years. Pretax accounting income for 2020 is $577,500, the tax rate for all years is 20%, and taxable income for 2020 is $445,500.(a) Compute income taxes payable for 2020.Income taxes payable $enter Income taxes payable in dollars (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.)Account Titles and ExplanationDebitCreditenter an account titleenter a debit amountenter a credit amountenter an account titleenter a debit amountenter a credit amountenter an account titleenter a debit amountenter a credit amount (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).)Tamarisk CorporationIncome Statement (Partial)choose the accounting period select an income statement item $enter a dollar amountselect an opening section name select an income statement item $enter a dollar amount select an income statement item enter a dollar amount enter a subtotal of the two previous amountsselect a closing name for this statement $enter a total net income or loss amount

Deferred tax liability arises when the tax due for one accounting period arising out of timing…

Answered: Tamarisk Corporation began 2020 with a…

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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(a)

Compute income taxes payable for 2020.

Income taxes payable

$enter Income taxes payable in dollars

(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.)

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	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount

(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).)

Tamarisk Corporation Income Statement (Partial) choose the accounting period


select an income statement item

select an opening section name
		$enter a dollar amount

select an income statement item

select an income statement item
	$enter a dollar amount

select a closing name for this statement
	enter a dollar amount
		enter a subtotal of the two previous amounts

		$enter a total net income or loss amount

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