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. Thisdifference 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 asunearned 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 notindent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

A journal entry records a business activity in the accounting system of an organisation. The…

The following information is available for Marigold Corporation for 2020. 1. 2. 3. 45 6. 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. 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.

The following information is available for Marigold Corporation for 2020. 1. 2. 3. 45 6. 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. 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.

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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Please show each step of calculation. Thanks in advance.
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