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 $10,100.3. Rent collected in advance on January 1, 2020, totaled $56,700 for a 3-year period. Of this amount, $37,800 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 $308,000 are due per the tax return for 2020.6. No deferred taxes existed at the beginning of 2020. Prepare the income tax expense section of the income statement for 2020, beginning with "Income before incometaxes." (Enter negative amounts using either a negative sign preceding the number eg. -45 or parentheses eg. (45).)Marigold CorporationIncome Statement (Partial)2$%24>>

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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 $10,100.
3.		Rent collected in advance on January 1, 2020, totaled $56,700 for a 3-year period. Of this amount, $37,800 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 $308,000 are due per the tax return for 2020.
6.		No deferred taxes existed at the beginning of 2020.

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 eg. -45 or parentheses eg. (45).)
Marigold Corporation
Income Statement (Partial)
2$
%24
>
>

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