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x financial income s depreciation expense on tax return Es warranty expense in financial income ble income $801,000 (28,800) 20,800 $793,000 $937,000 (40,000) 9,600 $906,600 $903,000 (10,300) 7,900 $900,600

x financial income s depreciation expense on tax return Es warranty expense in financial income ble income $801,000 (28,800) 20,800 $793,000 $937,000 (40,000) 9,600 $906,600 $903,000 (10,300) 7,900 $900,600

FINANCIAL ACCOUNTING
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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Vikram 

Sunland Company has the following two temporary differences between its income tax expense and income taxes payable. Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income The income tax rate for all years is 20%. 2025 Account Titles and Explanation $801,000 (28,800) 20,800 $793,000 2026 2025 $937,000 (40,000) 9,600 $906,600 2027 Debit $903,000 (10,300) Assuming there were no temporary differences prior to 2025, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025, 2026, and 2027. (List all debit entries before credit entries. 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. Record journal entries in the order presented in the problem.) 7,900 $900,600 Credit
Transcribed Image Text:Sunland Company has the following two temporary differences between its income tax expense and income taxes payable. Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income The income tax rate for all years is 20%. 2025 Account Titles and Explanation $801,000 (28,800) 20,800 $793,000 2026 2025 $937,000 (40,000) 9,600 $906,600 2027 Debit $903,000 (10,300) Assuming there were no temporary differences prior to 2025, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025, 2026, and 2027. (List all debit entries before credit entries. 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. Record journal entries in the order presented in the problem.) 7,900 $900,600 Credit
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