The following information is available for Marigold Corporation for 2020.1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $124,000. This difference will reverse in equal amounts of $31,000 over the years 2021–2024.2. Interest received on municipal bonds was $9,300.3. Rent collected in advance on January 1, 2020, totaled $64,200 for a 3-year period. Of this amount, $42,800 was reported as unearned at December 31, 2020, for book purposes.4. The tax rates are 40% for 2020 and 35% for 2021 and subsequent years.5. Income taxes of $297,000 are due per the tax return for 2020.6. No deferred taxes existed at the beginning of 2020.Taxable income in 2020 = 742,500Pretax financial income for 2020 = 833,000Prepare the income tax expense section of the income statement for 2020, beginning with “Income before income taxes.picture below: Prepare the income tax expense section of the income statement for 2020, beginning with "Income before income taxes." (Enternegative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)Marigold CorporationIncome Statement (Partial)For the Year Ended December 31, 2020Income before Income Taxes833,000Income Tax Expense297,000CurrentDeferred81,200'Net Income / (Loss)454,800Question Attempts: 2 of 5 usedSAVE FOR LATERSUBMIT ANSWER

Taxable Income=Income taxTax rate=29700040% =$742,500

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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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The following information is available for Marigold Corporation for 2020.

1.		Depreciation reported on the tax return exceeded depreciation reported on the income statement by $124,000. This difference will reverse in equal amounts of $31,000 over the years 2021–2024.
2.		Interest received on municipal bonds was $9,300.
3.		Rent collected in advance on January 1, 2020, totaled $64,200 for a 3-year period. Of this amount, $42,800 was reported as unearned at December 31, 2020, for book purposes.
4.		The tax rates are 40% for 2020 and 35% for 2021 and subsequent years.
5.		Income taxes of $297,000 are due per the tax return for 2020.
6.		No deferred taxes existed at the beginning of 2020.

Taxable income in 2020 = 742,500

Pretax financial income for 2020 = 833,000

Prepare the income tax expense section of the income statement for 2020, beginning with “Income before income taxes.

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