The following facts relate to Kingbird Corporation. 1. Deferred tax liability, January 1, 2020, $48,000. Deferred tax asset, January 1, 2020, $0. Taxable income for 2020, $114,000. Pretax financial income for 2020, $120,000. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $288,000. 6. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $42.000. Tax rate for all years, 20%. 7. The company is expected to operate profitably in the future. 2. 3. 4. 5. 8. (a) Compute income taxes payable for 2020. Income taxes payable

The following facts relate to Kingbird Corporation. 1. Deferred tax liability, January 1, 2020, $48,000. Deferred tax asset, January 1, 2020, $0. Taxable income for 2020, $114,000. Pretax financial income for 2020, $120,000. Cumulative temporary difference at December 31, 2020, giving rise to future taxable amounts, $288,000. 6. Cumulative temporary difference at December 31, 2020, giving rise to future deductible amounts, $42.000. Tax rate for all years, 20%. 7. The company is expected to operate profitably in the future. 2. 3. 4. 5. 8. (a) Compute income taxes payable for 2020. Income taxes payable

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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On December 31, 2019, an entity reported a deferred tax liability of P600,000 and a deferred tax asset of P150.000 On December 31, 2020, the deferred tax liability is P900,000 and the deferred tax asset is zero. What is the deferred tax expense for 2020?
The following information is available for Sarasota Corporation for 2019 (its first year of operations). 1. Excess of tax depreciation over book depreciation, $39,600. This $39,600 difference will reverse equally over the years 2020-2023. Deferral, for book purposes, of $21,900 of rent received in advance. The rent will be recognized in 2020. 2. 3. Pretax financial income, $271,300. 4. Tax rate for all years, 20%. Your answer is correct. Compute taxable income for 2019. Taxable income eTextbook and Media List of Accounts 253,600 Your answer is partially correct. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019. (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 Credit
*see attached problem REQUIRED: What is the net deferred tax expense for the current year?
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The following facts relate to Krung Thep Corporation: Deferred tax liability, January 1, 2015, $40,000 Deferred tax asset, January 1, 2015, $0 Taxable income for 2015, $115,000 Pretax financial income for 2015, $200,000 Cumulative temporary difference at December 31, 2015, giving rise to future taxable amounts, $220,000 Cumulative temporary difference at December 31, 2015, giving rise to future deductible amounts, $35, 000 Tax rate for all years, 40% The company is expected to operate profitably in the future. Instructions: Compute income taxes payable for 2015. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2015. Prepare the income tax expense section of the income statement for 2015, beginning with the line “income before income taxes.”
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