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. picture below:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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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.

picture below: 

 

Prepare the income tax expense section of the income statement for 2020, beginning with "Income before income taxes." (Enter
negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Marigold Corporation
Income Statement (Partial)
For the Year Ended December 31, 2020
Income before Income Taxes
833,000
Income Tax Expense
297,000
Current
Deferred
81,200
'Net Income / (Loss)
454,800
Question Attempts: 2 of 5 used
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Transcribed Image Text:Prepare the income tax expense section of the income statement for 2020, beginning with "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Marigold Corporation Income Statement (Partial) For the Year Ended December 31, 2020 Income before Income Taxes 833,000 Income Tax Expense 297,000 Current Deferred 81,200 'Net Income / (Loss) 454,800 Question Attempts: 2 of 5 used SAVE FOR LATER SUBMIT ANSWER
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